News Contact Us

Bega to raise $400 million to buy Lion Dairy and Drinks business

Author : Pankaj Singh | Published Date : 2020-11-24 

Bega Cheese, a leading Australian diversified food company, reportedly looks set to include yogurt in its product portfolio after beating Tanarra Capital and global dairy giant, Saputo Inc., in the bid to buy-out the Lion Dairy and Drinks business.

The deal, valued at $550 million, is currently in the last stages of negotiations and would likely be funded through a capital raising of approximately $400 million, with the balance that remains to be funded by debt. On Monday, the dairy giant went into a trading halt pending an announcement regarding the acquisition as well as a planned capital raising.

Tanarra, Saputo, and Bega have all been in the pursuit to purchase Lion’s dairy and drinks division until Friday when Saputo backed out of the process. The Canadian company’s withdrawal paved the way for Bega to get access to all financial details regarding Lion’s business, which also includes any significant agreements it has signed.

Successful acquisition of Lion would see Bega Cheese add several key labels such as Daily Juice, Farmers Union, Yoplait yogurt, Dairy Farmers, and Pura Milk in its portfolio. The food company will also take charge of a national exclusive cold chain distribution network with an enormous number of fridges in convenience stores and service stations under the agreement, and approximately a dozen production sites spread throughout Australia.

Lion, owned by leading Japanese brewer and food firm, Kirin, was initially on track to be acquired by China Mengniu Dairy for $600 million back in November of 2019. The competitor regulator had also gave a green signal to the deal. However, the agreement fell through in August 2020 after Josh Frydenberg, the Federal Treasurer told Mengniu that the proposed agreement went against national interest.

The acquisition marks the next step in the dairy company’s growth strategy, which has led the minor dairy farmer co-op to expand into a large, diversified food business.

Source credit : https://www.smh.com.au/business/companies/bega-to-get-bigger-with-purchase-of-lion-s-dairy-business-20201123-p56h6j.html

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Cyber Observer deploys new updates to reduce cybersecurity blind spots

Published Date: 2021-01-20         Author: Pankaj Singh

Israel-based leading internet security solutions provider Cyber Observer has reportedly introduced new updates to its renowned platform that allows CISOs and other security management teams to acquire new, unified, and continuous visibility regarding their cybersecurity tools. For those uninitiat... Read More

MFine secures USD 16 million in funding round led by Heritas Capital

Published Date: 2021-01-19         Author: Pankaj Singh

MFine, an Indian health-care startup, has reportedly raised USD 16 million from a funding round that was led by Singapore-based private equity firm Heritas Capital. Sources with knowledge of the matter stated that the funding round also witnessed participation from Alteria Capital, BEENEXT, SBI Ven ... Read More

Vonage teams up with Wall Street English to drive digital classrooms

Published Date: 2021-01-18         Author: Pankaj Singh

New Jersey-based leader in cloud communications Vonage has reportedly entered into a joint venture agreement with one of the prominent English language education service providers Wall Street English. As per the agreement, Wall Street English will leverage Vonage’s Video API solutions to power... Read More

© 2021 Fractovia. All Rights Reserved