AUSTRALIA – National Foods has made a cash offer of AUS$77 million (46m euro) for dairy company King Island.

King Island is Australia’s leading manufacturer, marketer and distributor of speciality cheese products and has a distribution network nationwide. 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 1.92 euro, to its shareholders. This is more than double the 0.83 euro 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.”

Should the deal go ahead, King Island would continue to operate as a standalone company. The offer is subject to shareholder approval and on the basis that no higher offer is placed.