The nation’s largest dairy co-operative, Murray Goulburn, has acquired leading cheese brand Caboolture cheese, as well as some processing equipment, from United Dairy Power (UDP), after UDP’s parent company fell into receivership late last year.
“Caboolture is a food service market-leading shredded mozzarella brand, mainly used in pizza restaurants,” Murray Goulburn chief executive Gary Helou said in a statement.
“The strategic integration of the Caboolture brand into our growing food service business will strengthen MG’s position in this segment.
“The acquisition of the Caboolture brand forms part of our strategy to diversify our portfolio to higher value dairy foods, with the goal of providing sustainably higher farmgate prices to MG suppliers.”
The move comes ahead of Murray Goulburn’s planned $500m capital raising in July, which will see a unit trust listed on the ASX.
Part of the proceeds of the raising are slated for an expansion of Murray Goulburn’s cheese processing facilities.
Last year Hong Kong businessman William Hui paid about $70 million to take control of UDP, Australia’s largest privately-owned milk processing company, from its founder Tony Esposito.
But UDPs parent company was placed in receivership after its banker moved to remove its board and appoint a new CEO to manage its debts.
Advisory firm PPB handled the Caboolture Cheese sale.
By Damon Kitney