Brownes Dairy is reportedly up for sale after private-equity owner Archer Capital received interest in the Australian dairy group.
According to the Australian Financial Review, Archer Capital has appointed corporate advisors to help sell Brownes Dairy, which the buy-out house acquired in 2011.
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Citing unnamed market sources, the publication said a sale process is expected to start within weeks.
Speaking to ABC, Brownes Dairy managing director and chief executive Tony Girgis was sanguine about whether the business was up for sale.
"Private equity are in the business of buying businesses in varying industry and hopefully grow them and sell them for profit. I don't know how much credence is in the article, there's been several from time to time. Given my experience and background, we don't pay too much attention to them because until there is someone in front of you with a cheque on the table, it's just talk," Girgis told the broadcaster.
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"Will Brownes be sold at some stage? Most likely yes. When and to whom and for how much, I have no idea. When the stars align it will happen. It will be good for the supplier base and staff. Certainty is good and no-one likes uncertainty."
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By GlobalDataGirgis joined Brownes in March and said the company had moved from becoming a "confused" business to a more "focused" entity.
Brownes worked on its portfolio, trimming some low-selling SKUs, while recently launching a yoghurt range to try to rebuild its market share in a key category for the business.
Girgis also told ABC Brownes is looking to rewrite contracts with suppliers to help the company focus more on products including yoghurt.
Fonterra struck an agreement to sell Brownes Dairy to Archer Capital subsidiary DairyWest in 2010.
The New Zealand dairy giant insisted at the time Brownes Dairy was "a profitable business, with strong brands" but said the regional nature of the Western Australia-based company meant it was "not receiving the right level of focus" within the world's largest dairy exporter.
