Fonterra snaffles distressed Tasmanian yoghurt-maker
Fonterra has snapped up a distressed Tamar Valley Dairy, in its latest contribution to the consolidation of Australian dairy assets.
Fonterra [NZX: FCG] has snapped up a distressed Tasmanian yoghurt company, Tamar Valley Dairy, in its latest contribution to the consolidation of Australian dairy assets.
Family-owned Tamar, which employs 170 people, was placed in voluntary administration in September, owing creditors A$9 million.
Fonterra appeared to warn there could be job losses as it sought to turn the business around and keep its operations in Tasmania.
The Auckland-based cooperative and world's largest dairy exporter would "work closely with the people at Tamar Valley Dairy to determine the roles and right employees for these roles to ensure a seamless transition and continuity of operations under Fonterra ownership."
"The business had "strong capability and innovation", was "known for producing new yoghurt formats and formulations" and had "built a national brand in Tamar Valley Dairy," said Judith Swales, managing director, Fonterra Australia.
"Fonterra plans to invest further to improve the manufacturing assets, upgrade quality and safety systems, invest in people in the business, and build capability for further innovation in the yoghurt category."
Tasmania is a significant dairy-producing region of Australia and Fonterra already has extensive interests in the southern island state, collecting almost 500 million litres of milk from some 260 dairy farms and employing 220 people.
Under the agreement, Fonterra will acquire assets including processing equipment and trademarks.
Fonterra says it has a market-leading position in the yoghurt market, which the acquisition will enhance.
The acquisition comes while a battle rages for control of the Victorian second tier producer Warrnoombal Cheese and Butter as rationalisation occurs in the Australian dairy processing sector.
Fonterra, which last week built a 6 percent stake in ASX-listed Bega Cheese, is involved in the tussle with local dairy big-foot, Murray Goulburn, and a Canadian dairy company, Saputo for WCB
(BusinessDesk)
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Fonterra snaffles distressed Tasmanian yoghurt-maker
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