On January 25, Bega Cheese Limited confirmed it had fully acquired Lion’s dairy and drinks arm, onboarding brands such as Dairy Farmers, Pura, Big M, Yoplait, Farmers Union and the Daily Juice Co.
The acquisition has doubled the size of the company, which owns Vegemite and Bega Cheese alongside Tatura Milk and the Strathmerton cheese factory.
For a few of the brands it is a return to Australian ownership after a stint with the Japanese-owned Lion.
Dairy Farmers in particular is of interest — the brand is one of the largest and oldest dairy manufacturers in Australia and was influential enough in the north Queensland dairy pool that the North Queensland Cowboys played at ‘Dairy Farmers Stadium’ from 1998 to 2013.
Lion is now focusing on alcoholic drinks and up-market juices, including Iron Jack, Furphy and a range of kombuchas.
Bega executive chairman Barry Irvin said January 25 was a significant day in the history of Bega.
“This goal of creating a great Australian food company with the capacity to service our customers in Australia and around the world took a step forward today,” Mr Irvin said.
“The acquisition of Lion Dairy & Drinks doubles the size of the company with revenue of $3 billion and brings together great brands.”
The change of hands has been welcomed by Lion’s largest supplier group, Dairy Farmers Milk Co-operative (unrelated to the Dairy Farmers brand).
The Bega-Lion sale came to fruition after Chinese company Mengniu Dairy bid to buy Lion Dairy & Drinks for $600 million, but the deal was knocked back by the Federal Government in November.
Canadian-based Saputo also showed an interest, but ultimately withdrew its offer in November as well.
8°C