New Zealand dairy manufacturer Fonterra is to buy the business and assets of Tasmanian yoghurt producer Tamar Valley Dairy.
Fonterra acquired the troubled dairy firm from administrators Deloitte for an undisclosed sum. Glen Kanevsky and Tim Norman were appointed joint administrators over the Launceston-based business on 23 September.
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At the time, Deloitte said the business operated in an “extremely competitive sector” and that it had been challenged due to a “slowdown in sales and pressure on margins”. The 17-year-old business was established in 1996 near Launceston, Tasmania and employs around 170 staff.
Fonterra will take on the processing equipment, related services, intellectual property and trademark for the Tamar Valley Dairy brand. The acquisition will be effective from 25 November.
Kanevsky said the sale was an “excellent outcome” for the business, employees, suppliers and the Tasmanian dairy industry in general.
“We are extremely pleased with the sale,” he said. “The voluntary administration process is inherently unpredictable, and this transaction now provides certainty of outcome for suppliers, customers and employees.
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By GlobalData“This is a particularly complex and highly regulated industry, and we are very fortunate to have received tremendous support from all stakeholders since our appointment which has allowed us the opportunity to pursue a transaction of this scale and complexity.”
