National Foods has made a cash offer of A$77 million (E46m) for dairy company King Island.
King Island is Australia’s leading manufacturer, marketer and distributor of speciality cheese products.
National Foods is also a major dairy manufacturer, owning the brands Pura milk, Big M, Pura Classic, Farmers Union and Master flavoured milks, as well as Yoplait and YoGo dairy products.
Commenting on the acquisition, National Foods’ managing director Max Ould said: “It will deliver a platform for further growth in the high value added sector of the cheese market and an opportunity to leverage off King Island’s technical expertise in our existing cheese business.” King Island’s board of directors has unanimously recommended the offer, which values each share at E1.92, to shareholders. This is more than double the E0.83 value of the share price when the company floated in 1999. Chairman of King Island Ray King said: “National Foods’ acquisition of King Island will begin a new era for the business and is certain to provide a strong platform for continued growth of the King Island premium brand.”