Saputo Completes Sale of Milk Processing Facilities to Coles Group Amid Regulatory Approval
Source: The DairyNews
Saputo Inc. has officially completed the sale of two of its fresh milk processing facilities to Coles Group Limited, marking a significant shift in the dairy industry landscape in Australia. The facilities in question are located in Laverton North, Victoria, and Erskine Park, New South Wales. The transaction was finalized on 24 June 2024, following initial announcements in April 2023.
The sale was contingent upon clearance from the Australian Competition and Consumer Commission (ACCC), which initially raised concerns about potential impacts on the dairy supply chain and the raw milk market in New South Wales. However, after careful consideration, the ACCC concluded in December 2023 that it would not oppose the acquisition, allowing the deal to proceed.
Previously, Coles had its milk processed at these facilities under an arrangement with Saputo. With the completion of this transaction, Coles will take over the operations, while Saputo will continue to source raw milk from its network of dairy farmers in Victoria and NSW. The milk will still be processed at the Laverton and Erskine Park sites, ensuring continuity in supply and operations.
As part of the acquisition, approximately 48 employees working at the two sites have been transferred to Coles Group Limited, securing their positions under the new management.
Lino A Saputo, Chair of the Board, President and CEO of Saputo, commented on the deal: “This sale reinforces our roadmap for long-term success in Australia and demonstrates our agility in further adapting our manufacturing footprint to focus on higher-value growth opportunities.”
The transaction not only underscores Saputo's strategic realignment towards more lucrative sectors but also enhances Coles' capacity to manage its dairy processing more directly, potentially leading to greater efficiency and control over its dairy products supply chain. This move is expected to have significant implications for the dairy industry in Australia, affecting everything from production to market dynamics.
Previously, Coles had its milk processed at these facilities under an arrangement with Saputo. With the completion of this transaction, Coles will take over the operations, while Saputo will continue to source raw milk from its network of dairy farmers in Victoria and NSW. The milk will still be processed at the Laverton and Erskine Park sites, ensuring continuity in supply and operations.
As part of the acquisition, approximately 48 employees working at the two sites have been transferred to Coles Group Limited, securing their positions under the new management.
Lino A Saputo, Chair of the Board, President and CEO of Saputo, commented on the deal: “This sale reinforces our roadmap for long-term success in Australia and demonstrates our agility in further adapting our manufacturing footprint to focus on higher-value growth opportunities.”
The transaction not only underscores Saputo's strategic realignment towards more lucrative sectors but also enhances Coles' capacity to manage its dairy processing more directly, potentially leading to greater efficiency and control over its dairy products supply chain. This move is expected to have significant implications for the dairy industry in Australia, affecting everything from production to market dynamics.