The Allansford-based business has entered into an agreement to acquire Lion’s “everyday cheese business”. Lion owns 10.22% of WCB shares.
The cheese business operations include cutting and wrapping, distribution, sales and marketing and intellectual property associated with the COON, Cracker Barrel, Mil Lel and Fred Walker brands.
It generates annual sales of $160m and employs 170 people.
The cut and wrap operations are already in a building owned by WCB, next to WCB’s cheese factory.
A WCB statement to the Australian Securities Exchange said “The transaction will enable WCB to increase its presence in consumer branded everyday cheese products segment in Australia, with strong market positions in this segment.”
The EDC business would be bought debt free and the price included $106.5m which represented the value of the inventory net of a minimal amount of assumed liabilities.
The purchase was subject to WCB shareholder approval.
Canadian giant Saputo holds 87.92% of the WCB shares and supports the transaction.
