China’s Mengniu Dairy is reportedly eyeing Burra Foods in a deal believed to value the Australian dairy group at more than A$300m (US$228.1m).
According to the Australian Financial Review, citing Burra founder Grant Crothers, Burra is in discussions with an unspecified number of parties and a deal is expected “before June”. The Crothers family, who currently own 55% of Burra, and Japanese group Itochu Corporation, which took a stake in Burra in 2009, are expected to retain stakes of 10% each in the company.
Burra manufactures value-added dairy ingredients for the global food manufacturing market. According to its website, the group specialises in delivering “the functional and sensory characteristics of fresh milk”. Products include cheese, fresh milk concentrates, food preparations, speciality milk powders and fresh dairy ingredients.
Burra processes around 300m litres of milk annually at its manufacturing plant in Korumburra, in south eastern Victoria. The company operates sales offices in Melbourne, Hong Kong and Tokyo.
Neither Burra nor Mengniu responded to requests for comment at time of press.