A consortium of Chinese investors, which includes Changchun Lianxin Investment Consulting and Shanghai Ground Food Tech, has acquired Brownes Dairy through Australia Zhiran.
Brownes was sold by its current owner Archer Capital, a private equity company, to the Chinese consortium. Financial terms of the acquisition have not been disclosed. Brownes expects the deal to be completed in the weeks to come.
After the acquisition, Brownes is expected to remain an integral part of the dairy industry in Western Australia (WA).
The consortium claims to have been attracted to Brownes business and operations. The prospect of the Brownes business entering the Asian market is another factor for the acquisition.
The company has a workforce of 280 people and is claimed to be the biggest producer of dairy products, including milk and cream, and the second biggest producer of yogurt in Western Australia.
Under the terms of the acquisition, Brownes will retain its current management, including managing director Tony Girgis. He said: “As it has done for 130 years, Brownes will remain an important part of the WA community and continue to contribute to the sustainability of the local dairy industry.
“This deal is a significant step in positioning Brownes for growth well into the future and we are excited at the opportunities offered to the business, our suppliers, employees and consumers.”
The West Australian reported that Shanghai Ground Food Tech is planning to restart its cheese production at Brownes to meet the demand in China.
Archer Capital partner Jeffrey Lim stated that it was relatively easy for the deal to have been reached because of Brownes’ market position in the country and its brand recognition and reputation.
He said: “Integral to the final outcome was finding a buyer with proven industry experience and a record of operating and growing similar businesses.
“We believe we have found that buyer and look forward to Brownes taking full advantage of the opportunities ahead.”
