TasFoods to Sell Pyengana Dairy for Strategic Growth

TasFoods Limited (ASX:TFL), an Australian firm specializing in the food industry, particularly in dairy and poultry, has revealed its strategic move to sell Pyengana Dairy. Known for its Traditional Cloth Bound cheddar cheese, Pyengana Dairy's growth is expected to be better fostered under new ownership, according to TasFoods.

The company purchased Pyengana Dairy in 2017 but has decided to proceed with the sale following a comprehensive business review. This review determined that TasFoods' existing structure does not align with the expansion requirements of the Pyengana Dairy brand. Proceeds from the sale are to reinforce TasFoods' poultry supply chain.

Strategically located in Tasmania, Pyengana Dairy has a legacy exceeding 130 years in artisan cheese production, utilizing milk from a nearby single herd dairy farm. TasFoods has initiated a marketing campaign aimed at the sale. It has also struck a non-binding Term Sheet – Option Agreement with major shareholder MSC ATF AgFood Opportunities Fund (“AgFood”) for potential sale at $2 million plus inventory.

The agreement, extendable until mid-September 2025, allows TasFoods to maintain management under a Service Agreement to ensure continued business growth. Meanwhile, TasFoods pledges to explore other strategic avenues, including partnerships and vertical integration, enhancing its overall asset strategy.