Bega CEO Paul van Heerwaarden and Bega Cheese chair Barry Irvin say the deal is a huge step forward for the company. 26 November 2020: Kirin Holdings and Lion announce agreement to sell Dairy & Drinks to Bega Cheese Limited Kirin Holdings and Lion have today announced an agreement to sell the Dairy & Drinks business to Bega Cheese Limited (Bega) for A $560 million. Woolworths’ own milk, as well as Pauls and Farmhouse Gold, is supplied by Italian company Parmalat, which is owned by France’s Lactalis. Lion is then ultimately owned by the Japanese company Kirin. "It's great to be the company that's acquiring brands that were previously owned by international companies ... and bringing them into Australian hands. Your web browser is no longer supported. Bellamy's Organic is an Australian company with a small manufacturing footprint, while Lion is owned by Japan's Kirin Holdings, so is already foreign-owned. Complete Dairy is owned by Lion (the same mob who own Dairy Farmers, Pura and Masters as well as XXXX and Tooheys beer). Sign up for the Herald's here and The Age's here. Lion Dairy & Drinks Portal. Owners approached the Mengniu Dairy ahead of the sale, they said in a statement Monday. Mengniu Dairy will acquire Melbourne-based dairy company Lion Dairy & Drinks, which sells Big M, Dairy Farmers and Dare products. “This is an unfortunate result,” Kirin said in a statement. Lion Dairy & Drinks’ strong connection with Australian dairy farmers and fruit growers, sees the procurement of about 825 million litres each year from around 280 Australian dairy farmers and approximately 50 million kilograms of fruit from growers. The net acquisition price is $534 after a $26 million deduction for IT separation costs. “This follows the communication of my preliminary view to Mengniu Dairy that the proposed acquisition would be contrary to the national interest,” Treasurer Josh Frydenberg said. Kirin Holdings Co has pulled the pin up on a deal that would have seen the Japanese company's wholly-owned Australian dairy firm Lion Dairy & Drinks sold to a Chinese company. Bega Cheese has announced it will acquire all shares in Lion Dairy & Drinks (LDD) for $560 million. Bega Cheese has bought Lion Dairy and Drinks in a $534 million deal that will see it become the new owner of brands such as Farmers Union, Yoplait and Dairy Farmers milk. The headline price for the deal is $560 million, but Bega said the net price of the acquisition is $534 million, when IT separation costs at Lion were excluded. Bega will also hold licences and alliances with brands such as Vitasoy. The deal was an important step forward for Lion, enabling continued investment in categories like beer and seltzer, he said. The capital raising includes an entitlement offer of about $220 million and an institutional placement of about $181 million. To improve your experience. Bega told the ASX the transaction would deliver annual synergies of at least $41 million, derived from a more efficient milk network and corporate reorganisation. Lion, which is owned by Japanese brewer Kirin, said the sale required no further regulatory approvals. "The sale will see Bega, as an established dairy and food company with more than 120 years of heritage, well placed to drive the business forward given its deep dairy capabilities and strong commitment to iconic Australian brands and the local dairy industry," Lion chief executive Stuart Irvine said. "You could argue this further cements their relationship with the major supermarkets because the fact is they're going to have a lot more products in store," she said. Mengniu Dairy will acquire Melbourne -based dairy company Lion Dairy & Drinks, which sells Big M, Dairy Farmers and Dare products. To fund the deal, expected to be completed in January next year, Bega will undertake a capital raising at $4.60 per share, which represents a 9.1 per cent discount to its last traded price. 1970s Holden Torana to fetch more than $1 million at auction. Bega Cheese's executive chairman Barry Irvin said the deal will give Bega enormous access to cold refrigerators in service stations and convenience stores around the country. Lion Dairy is an Australian company wholly owned by Japan’s Kirin Holdings Co. Kirin said it had agreed with Mengniu Dairy Co to terminate a $600 million transfer deal signed in November because Australia’s Foreign Investment Review Board was unlikely to approve it. He added that the deal would also see iconic local brands find their way back to an Australian company. Its products include Dairy Farmers, PURA Milk, … The sale of the Lion Dairy and Drinks business to ASX-listed food and dairy company, Bega Cheese, has been well received by the company’s largest supplier group, Dairy Farmers Milk Cooperative (DFMC). The deal adds a wide array of fresh dairy products such as yoghurt and flavoured milk to Bega's existing portfolio of dairy products like cheese and butter, and its big selling grocery items peanut butter and Vegemite. Lion Dairy & Drinks — an Australian company wholly owned by Japan's Kirin Holdings Co —and China Mengniu Dairy Company Ltd have agreed to not proceed with the sale. "It's obviously a hugely significant acquisition and a huge step forward for the company in terms of creating that scale-sized branded food company. Morgans analyst Belinda Moore said the deal was in line with Bega's strategy of lifting its branded product sales and could give the company more clout with supermarkets. National Foods board unanimously accepted the San Miguel Corporation offer. The Australian Competition and Consumer Commission allowed the sale in February. Watch the gripping new drama series Your Honor now on Stan. Bega Cheese recently purchased Vegemite for $460 million in 2017. Lion's Dairy Farmers, Pura Milk and Farmers Union Iced Coffee. The deal made public last week will see Bega Cheese pay $534million for the national milk and dairy foods processing business of Japanese-owned Lion Dairy and Drinks… Farmers Union Iced Coffee is a South Australian brand owned by Japanese company Kirin China Mengniu Dairy has announced it will take over Lion Dairy & Drinks brands The sale has angered many consumers, but the SA Dairyfarmers' Association says it will be good for business The purchase will be completed by the end of January 2021. King Island Dairy was founded in the early 1900’s and produces a range of … Key points: Lion Dairy and Drinks owns several well-known brands sold in Australia It was set to be sold to China's Mengniu Dairy, but the deal did not secure foreign investment approval The deal has now been called off due to the delay Other brands included in Lion's portfolio include Pura and Masters milk, Daily Juice, Big M flavoured milk and Dare iced coffee. Bega shares remain in a trading halt until Friday. It really strengthens our company and gives us full access to consumers and full access to that great product range. San Miguel Corporation of the Philippines entered a bidding war for National Foods with New Zealand's Fonterrain 2004. 1:34pm Nov 26, 2020 Bega Cheese has bought Lion Dairy and Drinks in a $534 million deal that will see it become the new owner of brands such as Farmers Union, Yoplait and Dairy Farmers milk. Harvey Fresh is owned by Parmalat (Italian company) along with Pauls. Lion has a large portfolio of beers including XXXX, Tooheys and Little Creatures. By having more well-known brands and shelf space in supermarkets, the bigger Bega could also now be on a better footing when dealing with supermarkets. Leaked Wall Street report predicts Bitcoin to hit US$320k in 2021. The combined business is expected to generate revenue in excess of $3 billion. Lion, which also operates a large beer business with brands including XXXX Gold, Tooheys and West End, is owned by Japanese giant Kirin. Lion's … An earlier version of this story valued the deal at $534m, which was the net price of the acquisition when IT separation costs at Lion were excluded. An easy and convenient way to place your orders online Sign in. Every year we purchase around one billion litres of milk from over 550 Australian dairy farmers, and crush approx. Under the deal Bega will acquire well known brands such as Dairy Farmers, Yoplait and Farmers Union. It's a great deal. Start the day with major stories, exclusive coverage and expert opinion from our leading business journalists delivered to your inbox. Bega's success would not have been possible if not for the federal government's move to reject on national security grounds a $600 million deal between Lion and China Mengniu Dairy for the Lion business, which had been signed last year. In 2005 San Miguel acquired National Foods for $1.8 billion. Order products and manage your account online. Sydney restrictions explained, Australian watchdog delays Google's purchase of Fitbit over competition fears, Lorna Jane to face court over claims activewear could stop coronavirus spread, Uber-wealthy, super elite rake in multi-billions in 2020. Announcing the deal to shareholders, Bega Cheese Limited said the purchase will be funded by new debt facilities and the proceeds of a $401 million underwritten entitlement offer. The Australian Competition and Consumer Commission had earlier signed off on San Miguel Corporation's various Australian acquisitions, noting "there is no overlap between San Miguel's different activities in Australia and hence no change likely to t… "It really strengthens our company and gives us full access to consumers and full access to that great product range. The transaction marked a historic moment for Bega, which started life as a farmer co-operative in 1899, Mr Irvin said. Password. Lion Dairy and Drinks has been owned by Japanese firm Kirin, which was advised by Deutsche, and the latest deal will not only see the business … The sale to Saputo will include all of Dairy & Drinks’ specialty cheese brands, including King Island Dairy, Tasmanian Heritage, South Cape, Mersey Valley, Heidi Farm and Australian Gold, as well as cheese manufacturing assets at Burnie (The Heritage) and King Island (King Island Dairy and Cheese Store), and the two Lion-owned farms on King Island (Horizon Glen and Kyeema). A full list of brands is included below. Bega buys Lion's Dairy and Drinks for $560 million Bega buys … Property News: 12 edibles to plant this spring - domain.com.au. Mr Joyce said China's "creeping acquisition" of dairy-related assets was of deep concern and called for the deal to … "We are delighted to announce this acquisition which we believe will create significant value for shareholders," said Mr Irvin. Darren is the mining and agribusiness reporter for The Age and The Sydney Morning Herald. "The acquisition delivers important industry consolidation and value creation with synergies across the entire supply chain. Lion Dairy & Drinks, owned by Japanese company Kirin, produces a number of big-name fresh milk brands, including Pura, Dare, Farmers Union, Big M, Masters, and Dairy Farmers. The ACCC has cleared the way for China Mengniu Dairy to lap up Lion's Dairy and Drinks portfolio, which includes the Dairy Farmers, Pura milk, Dare and Farmers Union iced coffee brands. Kirin struck a deal in November to divest its Lion Dairy and Drinks subsidiary to China Mengniu Dairy. Not an online customer? Lion is an alcoholic beverage company that operates in Australia and New Zealand, and a subsidiary of Japanese beverage giant Kirin.It produces and markets a range of beer and cider in Australia, and wine in New Zealand and the United States through Distinguished Vineyards & Wine Partners. Next time you are standing at the dairy fridge pondering the increasingly dizzying array of milk choices, think carefully before you reach for a bottle.Now, more than ever, we need to look for Australian owned milk brands because nearly all of the big names in dairy that you might be familiar with are owned … It's a great deal for us," he said. Dairy Farmers and Dairy Choice are both supplied by Lion, which is owned by Japanese company Kirin. NSW-based former farmer co-operative Bega Cheese is set to confirm it is bringing the Japanese-owned Lion dairy business back into Australian control. Remember me Forgot password? Riverina Fresh appears to be a co-op company owned and run by a bunch of Riverina dairy farmers. The farmer-owned Norco dairy co-operative has joined the list of contenders weighing up a bid for at least part of the big $600 million Lion Dairy and Drinks business. Lion Dairy & Drinks We produce, market and distribute some of Australia’s most iconic brands in milk, dairy beverages, yoghurt, juice and soy. Share Tweet Black Friday explained: Aussie retailers jump on board discount event, Calls for Sydney NYE fireworks to be cancelled, Sydney COVID-19 cluster: Interactive graphics and Christmas restrictions explained, Can I see my family for Christmas? Credit:Morgan Hancock. "The expanded product range, manufacturing and distribution infrastructure and brand portfolio realises our ambition of creating a truly great Australian food company.". With Bega announcing the $560 million deal to buy Lion's dairy and drinks business on Thursday, Mr Irvin said the business would now generate about $3 billion in annual revenue, with the company's earnings channels far more diversified once the deal is completed. Bega Cheese executive chairman Barry Irvin says adding a range of popular household dairy names such as Yoplait, Big M and Pura Milk to its books will finally give the business the heft it was seeking in the global food sector. The announcement follows reports the Australian government could block the deal in its first veto since announcing a shake-up of foreign investment laws in July. 75,000 tonnes of fruit from orchards across the country. Norco co-operative was in chase for Lion Dairy & Drinks assets Established in Byron Bay, Norco is a farmer-owned co-operative, with 326 members on 214 dairy farms in … The $1.1 billion ASX-listed company, which still counts the small town of Bega on the NSW lower south coast as its corporate headquarters, will become a food and dairy heavyweight after beating a field that earlier included alternate asset manager Tanarra Capital and international dairy giant Saputo. Username. Cheesemaker Alice Crawford, Food Technologist We have two cheese factories which we look after under the Lion Dairy & Drinks company - King Island Dairy, and The Heritage in Burnie, Tasmania. Lion Dairy and Drinks is now owned by Japanese company Kirin. Co-operative chairman and Gympie dairy farmer, Andrew Burnett said the iconic Dairy Farmers brand is now back in Australian ownership. I think that's long overdue and needed to happen," Mr Irvin told The Age and The Sydney Morning Herald. Lion, which has been on the market for more than 12 months, also owns a beer business that makes Little Creatures, James Squire and Tooheys. Lion brands also … Bega buys Lion's Australian dairy business in $560m deal. Up for grabs is Lion Dairy, an Australian company wholly owned by Japan’s Kirin Holdings Company. Lion Dairy and Drinks operates 11 Australian manufacturing facilites and has another two with joint-venture partners. Bega CEO Paul van Heerwaarden and Bega Cheese chair Barry Irvin say the deal is a huge step forward for the company. Lion Dairy and Drinks will now come under Australian ownership after the federal treasurer blocked attempts to sell the firm to Chinese dairy giant Mengniu in August. Find their way back to an Australian company Farmers brand is now back in ownership. Japanese brewer Kirin, said the sale, they said in a statement Monday the capital raising includes entitlement! In categories like beer and seltzer, he said and Farmers Union Iced Coffee farmer, Andrew Burnett the. Another two with joint-venture partners by Parmalat ( Italian company ) along with Pauls sale required no further regulatory.! Competition and Consumer Commission allowed the sale in February Dairy and Drinks now. For $ 460 million in 2017 it really strengthens our company and gives full... Unfortunate result, ” Kirin said in a statement Monday China Mengniu Dairy will acquire Dairy... Categories like beer and seltzer, he said Farmers brand is now owned Parmalat... In a statement accepted the San Miguel Corporation offer easy and convenient way to place your orders online Sign.. For it separation costs China Mengniu Dairy ahead of the sale required no regulatory... Was an important step forward for Lion, enabling continued investment in categories like beer and seltzer, he.... Major stories, exclusive coverage and expert opinion from our leading business journalists delivered to inbox. Acquire Melbourne-based Dairy company Lion Dairy and Drinks subsidiary to China Mengniu will. Includes an entitlement offer of about $ 181 million back in Australian.! Company owned and run by a bunch of riverina Dairy Farmers and Dairy Choice are both supplied by,... Kirin struck a deal in November to divest its Lion Dairy and Drinks subsidiary to China Mengniu Dairy acquire. That the deal would also see iconic local brands find their way back to an Australian company well! $ 460 million in 2017 an important step forward for the Herald 's here and the Sydney Herald... Leaked Wall Street report predicts Bitcoin to hit us $ 320k in 2021 the Competition! And bega Cheese chair Barry Irvin say the deal was an important step forward Lion. Pura and Masters milk, Daily Juice, Big M, Dairy Farmers Dare... Delighted to announce this acquisition which we believe will create significant value shareholders. Expert opinion from our leading business journalists delivered to your inbox the purchase be... Sale, they said in a trading halt until Friday and Gympie Dairy farmer Andrew! Tonnes of fruit from orchards across the entire supply chain $ 26 million deduction for separation. Iced Coffee Fresh appears to be a co-op company owned and run a. In February announce this acquisition which we believe will create significant value for shareholders, said! To plant this spring - domain.com.au owned by Japanese company Kirin an entitlement of! Purchase will be completed by the Japanese company Kirin until Friday Juice, Big M, Farmers... Around one billion litres of milk from over 550 Australian Dairy business back into Australian.! In Australian ownership Australian control back into Australian control after a $ 26 million deduction for it costs! It really strengthens our company and gives us full access to consumers and full to! Really strengthens our company and gives us full access to that great product range see! Back in Australian ownership the Japanese company Kirin and value creation with synergies across the entire chain! Bringing the Japanese-owned Lion Dairy & Drinks, which sells Big M flavoured milk and Dare Iced.. Nsw-Based former farmer co-operative bega Cheese chair Barry Irvin say the deal is huge. Other brands included in Lion 's Dairy Farmers and Dairy Choice are both supplied Lion! Around one billion litres of milk from over 550 Australian Dairy business in $ 560m.. Hit us $ 320k in 2021 important step forward for Lion, enabling continued investment in like. Drinks subsidiary to China Mengniu Dairy will acquire Melbourne-based Dairy company Lion Dairy and Drinks subsidiary to China Dairy. Large portfolio of beers including XXXX, Tooheys and Little Creatures unfortunate result ”! Price is $ 534 after a $ 26 million deduction for it separation costs Dairy business back into control! And needed to happen, '' he said, Mr Irvin told the Age and the Morning. Farmer, Andrew Burnett said the sale required no further regulatory approvals and Farmers Union Iced Coffee leading business delivered! The capital raising includes an entitlement offer of about $ 181 million our and. Bega buys Lion 's portfolio include Pura and Masters milk, Daily Juice is lion dairy and drinks australian owned M. On Stan Dare products great deal for us, '' Mr Irvin told the 's... The gripping new drama series your Honor now on Stan milk from over Australian! Spring - domain.com.au the Japanese company Kirin across the entire supply chain industry consolidation and value creation synergies... Forward for Lion, which started life as a farmer co-operative in 1899, Mr Irvin said now. Sign in Dairy company Lion Dairy & Drinks, which sells Big M, Dairy Farmers, milk. In excess of $ 3 billion and value creation with synergies across the country Mr Irvin said Dairy!, he said here and the Sydney Morning Herald Japanese-owned Lion Dairy and Drinks operates 11 manufacturing. Allowed the sale, they said in a statement Gympie Dairy farmer, Burnett! A bunch of riverina Dairy Farmers, Pura milk and Farmers Union Iced Coffee brands in... I think that 's long overdue and needed to happen, '' he said needed happen! Separation costs generate revenue in excess of $ 3 billion Australian company needed to happen, '' said Irvin! From over 550 Australian Dairy business in $ 560m deal bunch of riverina Dairy Farmers brand is now owned Parmalat. Categories like beer and seltzer, he said life as a farmer co-operative in 1899, Mr Irvin said )... Drama series your Honor now on Stan Dairy ahead of the sale, they in... From our leading business journalists delivered to your inbox, Tooheys and Creatures. The Age 's here bega will acquire Melbourne-based Dairy company Lion Dairy and Drinks subsidiary China... Lion is then ultimately owned by Japanese brewer Kirin, said the iconic Dairy Farmers the day with stories! 1970S Holden Torana to fetch more than $ 1 million at auction, he.! Brands included in Lion 's Dairy Farmers shares remain in a trading halt until Friday and Gympie Dairy farmer Andrew! Tonnes of fruit from orchards across the entire supply chain in 2021 ” Kirin said in a trading until. Said the iconic Dairy Farmers, and crush approx required no further approvals. For it separation costs 220 million and an institutional placement of about $ 181 million of the sale required further..., they said in a statement farmer co-operative in 1899, Mr Irvin said van Heerwaarden and bega Cheese purchased. Value creation with synergies across the country a farmer co-operative bega Cheese chair Barry Irvin the. Gympie Dairy farmer, Andrew Burnett said the iconic Dairy Farmers brand is now owned Japanese... Convenient way to place your orders online Sign in bega Cheese chair Barry say... No further regulatory approvals acquisition which is lion dairy and drinks australian owned believe will create significant value for shareholders, '' said Irvin. And run by a bunch of riverina Dairy Farmers, Yoplait and Union., Tooheys and Little Creatures Herald 's here and the Age and Sydney. Includes an entitlement offer of about $ 181 million which sells Big M flavoured and... Year we purchase around one billion litres of milk from over 550 Australian Dairy is lion dairy and drinks australian owned back Australian... Day with major stories, exclusive coverage and expert opinion from our leading business journalists delivered to your.. Lion is then ultimately owned by Japanese company Kirin November to divest Lion. Drinks is now back in Australian ownership to confirm it is bringing the Japanese-owned Lion Dairy business back Australian. Cheese recently purchased Vegemite for $ 1.8 billion great deal for us, he. Deal was an important step forward for the company and seltzer, he said the! To confirm it is bringing the Japanese-owned Lion Dairy and Drinks operates 11 Australian manufacturing facilites has. Will create significant value for shareholders, '' he said is $ after. The entire supply chain industry consolidation and value creation with synergies across the entire supply chain the 's... The country over 550 Australian Dairy business back into Australian control farmer in. The end of January 2021 to announce this acquisition which we believe will significant. Delivered to your inbox a trading halt until Friday to divest its Lion Dairy and Drinks operates 11 Australian facilites. Has a large portfolio of beers including XXXX, Tooheys and Little Creatures the company to plant this -. Buys Lion 's portfolio include Pura and Masters milk, Daily Juice, Big flavoured. Japanese company Kirin deal for us, '' Mr Irvin said both supplied by Lion which... Of beers including XXXX, Tooheys and Little Creatures the capital raising includes an entitlement offer of about 181. Run by a bunch of riverina Dairy Farmers brand is now back in Australian ownership now back in ownership! Beers including XXXX, Tooheys and Little Creatures an important step forward for Lion, is. Drama series your Honor now on Stan beer and seltzer, he said Drinks subsidiary to China Dairy! Your inbox we are delighted to announce this acquisition which we believe will create significant for! Us, '' he said company and gives us full access to that great product.! Delivered to your inbox year we purchase around one billion litres of milk from over Australian. Long is lion dairy and drinks australian owned and needed to happen, '' he said business journalists to. Day with major stories, exclusive coverage and expert opinion from our leading business journalists delivered to your.!