Canada-based Saputo Inc. and its Australian subsidiary, Warrnambool Cheese and Butter Factory Co. Holdings Ltd. (WCB), entered into an agreement to acquire the everyday cheese (EDC) business of Lion-Dairy & Drinks Pty Ltd., based in Victoria, Australia.
The transaction is subject to usual conditions and is expected to close toward the beginning of May 2015.
The EDC business' operations include cutting and wrapping, distribution, sales and marketing and intellectual property associated with the COON, Cracker Barrel, Mil Lel and Fred Walker brands. The EDC business employs approximately 170 people. The cut and wrap operations are located in a building owned by WCB, which is adjacent to WCB's cheese manufacturing facility at Allansford.
The transaction will enable WCB to increase its presence in the consumer branded everyday cheese products segment in Australia, and is consistent with Saputo's strategy to accelerate its growth in Australia.