The a2 Milk Company (a2MC) has completed the acquisition of a 75 per cent interest in Mataura Valley Milk (MVM), a dairy nutrition business located in Southland, New Zealand.
The transaction was consistent with the previous proposal to acquire 75 per cent of MVM for NZ $268.5 million, which was funded by a2MC’s existing cash reserves.
A2 Milk is a premium branded, dairy nutritional company focused on products containing the A2 beta-casein protein type.
The goals of the acquisition were: participation in nutritional products manufacturing; geographic diversification; and strengthening of the company's relationship with key partners in China, one being a shareholder of MVM.
Shares in a2 Milk Company (ASX:A2M)
are trading 3.9 per cent lower at $5.90.