Bega to snap up Koroit dairy plant

Company News

by Anna Napoli

Flowers in Chania Dairy company, Bega Cheese (ASX:BGA) is planning to snap up the Koroit dairy processing plant from Saputo Dairy Australia.

The purchase price is $250 million, which will be funded by new and existing debt facilities. The transaction is subject to ACCC approval. 

Bega says, the Koroit plant would generate annualised earnings of around $20 million based on the present intake of 300 million litres.

Saputo offered to sell the plant prior to its takeover of Murray Goulburn, to remedy ACCC concerns about competition in the raw milk market.

Shares in Bega Cheese (ASX:BGA) are trading up 2.6 per cent to $7.90.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.