The purchase will see Bega now take Dairy Farmers, Pura, Farmers Union, Daily Juice, Dare, Big M and Yoplait under its umbrella.Bega Cheese executive chairman Barry Irvin said the company is excited by the move after months of speculation surrounding the purchase.In August the Federal Government rejected the sale of Lion dairy to Chinese company China Mengnui Dairy.“We are delighted to announce this acquisition which we believe will create significant value for shareholders,” Mr Irvin said.
“The acquisition delivers important industry consolidation and value creation with synergies across the entire supply chain. “The expanded product range, manufacturing and distribution infrastructure and brand portfolio realises our ambition of creating a truly great Australian food company.”Bega Cheese will now increase its annual milk intake from 955 million litres to 1.7 billion litres.The company’s CEO Paul van Heerwaarden said recent acquisitions including Vegemite, peanut butter and salad dressings from Mondelez have seen the company “achieving or exceeding” profit targets.Earlier this month the High Court of Australia dismissed Kraft Heinz’s application for special leave to appeal in relation to packaging rights surrounding the iconic yellow labelling of Bega’s peanut butter.“The recent company restructure and ERP implementation will allow us to integrate this acquisition and take advantage of the various synergies and growth opportunities across domestic and international markets,” he said.A capital raising of $401 million, priced at $4.60, will cover most of the acquisition, with Bega Cheese in a trading halt since Monday.It is expected to resume trading this week.
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