China Mengniu Dairy Company has announced that it will buy Lion-Dairy & Drinks, an Australia-based branded dairy and beverage company, from Japan’s Kirin Holdings for US$407mn
The sale will see Mengniu control the Australian household brand such as Pura, Dairy Farmers ad Moove flavoured milk.
The Australian company procures approximately 825mn litres of milk equivalent and 50mn kg of fresh fruit from approximately 280 farmers and 85 fruit growers annually.
It has extensive manufacturing and cold chain distribution capabilities across Australia, with a total of 13 manufacturing facilities (inclusive of two facilities operating as joint ventures) and a cold chain distribution network reaching 35,000 customers.
The Australian company has a presence in international markets including South East Asia and China (currently, primarily through yoghurt products).
The acquisition further opens-up potential raw milk and other ingredient sourcing opportunities, which will bring about additional synergies within the group.
From a supply chain perspective, the collaboration between Lion Dairy, Burra Foods and Bellamy’s will potentially generate even greater synergies while providing better products to consumers across the Asia-Pacific region.