Australia based Warrnambool Cheese and Butter Factory (WCB) has agreed to acquire the everyday cheese business (EDC Business) of Lion-Dairy & Drinks (LDD), in a A$137.5m ($107.3m) deal.
With this transaction, WCB will boost its presence in the consumer branded everyday cheese products segment in Australia, the company stated.
Under the agreement, WCB will take ownership of Lion's everyday cheese brands, which include Coon, Mil Lel and Cracker Barrel.
In addition, the firm will secure control of Lion's cut and wrap facility that is located adjacent to WCB's site at Allansford, Victoria.
LDD managing director Peter West said: "Our decision to sell is part of our broader three-year strategy to turnaround performance at LDD and drive sustainable profit growth.
"We are focusing resources behind our biggest growth opportunities, which are in higher-value categories such as milk based beverages, speciality cheese and yoghurt."
The sale is subject to WCB shareholder approval and is expected to close towards the beginning of May this year.
WCB currently produces a range of dairy products for domestic and export markets and its local brands include the Sungold Milk range of packaged fresh milk and the Warrnambool Cheddars cheese varieties.
In 2014, Canadian dairy company Saputo acquired 87.92% of WCB shares.
Image: This acquisition will enable WCB to increase its presence in consumer branded everyday cheese products segment in Australia. Photo: courtesy of Suat Eman/ freedigitalphotos.net.
