Page 6 - Food & Drink Business Nov-Dec 2019

NEWS
Saputo’s $280m cheese deal complete
SAPUTO has completed its acquisition of Lion Dairy & Drinks’ speciality cheese business for $280 million within weeks of the Australian Competition and Consumer Commission (ACCC) clearing the sale.
On 27 October, Saputo announced the completed purchase of the Speciality Cheese Business, which operates at two manufacturing facilities in Burnie and King Island, Tasmania.
Chair of the board and CEO, Saputo, Lino A. Saputo Jr., said the company was delighted to have successfully acquired the speciality cheese business of Lion Dairy & Drinks.
“As we now expand our network and our product offering, we also welcome approximately 400 employees and a new group of milk suppliers to Saputo,” he said.
“We look forward to working together to leverage best practices and pursue opportunities to further enhance our leadership position in Australia.”
Saputo announced the purchase was on a cash-free and debt-free basis, with the acquisition “[enabling] Saputo’s Dairy Division (Australia) to further diversify its product offering, adding to and complement its current activities”.
The ACCC cleared the deal in September and said that after consultation with “many farmers and other interested parties” it did not think the deal would substantiallylessencompetition. ✷
SPC gets out of a jam
tna founders honoured with Order of Australia
ALF and Nadia Taylor, founders of food processing and packaging solutions provider tna, have been honoured as members (AM) of the Order of Australia.
The Taylors were presented with their medals by the Governor of NSW, Her Excellency the Honourable Margaret Beazley, in recognition of their service to the community through their philanthropic initiatives including the Nadia and Alf Taylor Foundation.
Nadia (left) and Alf Taylor with NSW Governor, Her Excellency the Honourable Margaret Beazley.
SHEPPARTON Partners Collective (SPC) is offloading its Kyabram Factory and the iconic brands of IXL jam and Taylor’s marinades and sauces to the newly formed Kyabram Jam Company, for an undisclosed sum.
The new owners are a group of farmers and growers from the Goulburn Valley. The deal is expected to settle before end of the year.
The news comes four months after SPC – formed by two private equity funds – bought Coca-Cola Amatil’s fruit and processing business Shepparton Preserving Company, for $40 million plus potential performance related payments totalling up to $15 million, and just weeks after former chief commercial officer Robert Giles (pictured, right) was promoted to CEO of the new company.
Speaking to Food & Drink
Business Giles said, “SPC has two factories, Shepparton and Kyabram, and both have room to grow. We want to focus our attention on one production site. It made a lot of sense to divest Kyabram.”
Giles said the new owners would continue to process the IXL and Taylor’s brands from the existing site in Kyabram, with the existing workforce. He said the new owners are committed to local production and jobs by continuing the supply of these world-class products. Almost all the 35 staff at Kyabram will move to the newcompany. ✷
Australia-China meat MOU
AUSTRALIAN Meat Industry Council (AMIC) CEO Patrick Hutchinson has signed a memorandum of understanding (MOU) with the China Meat Association. He signed the China Australia Red Meat Agreement (CARMA) on behalf of the Australian Meat Industry Council, Meat & Livestock Australia and the Australian Meat Processor Corporation.
The MOU underlines a commitment to collaboration andto“securetradeoutcomes
beneficial to all parties”. AMIC said Australian beef,
lamb and mutton trade into China has a total market value of around $2 billion.
“China is the biggest export market for Australian meat. Maintaining and enhancing our relationship with this critical partner is essential for
the future of our industry,” said Hutchinson.
The aim of the MOU istoestablishlong-termand
formal cooperative relations, as well as “strengthen effective and practical food safety processes and enable bilateral exchanges around technical know-how, marketing, and research and development investment”.
CARMA will also initiate a new working group to help implement goals, including an
enhanced supply chain for Australian
meatintoChina. ✷
6 | Food&Drink business | November-December 2019 | www.foodanddrinkbusiness.com.au