The Australian Competition and Consumer Commission has notified Bega Group that it will not object to the acquisition of Betta Milk and Meander Valley Dairy from TasFoods Limited.
The $11 million acquisition also includes a perpetual, royalty-free licence to use the Pyengana Dairy brand for milk and cream products in Australia.
The deal will see the Burnie milk plant, equipment, and staff transferred to Bega; however, TasFoods will retain the land and buildings on the site and lease them back to Bega.
“We are pleased that Bega, an iconic Australian company with a strong heritage in both the dairy sector and Tasmania, has chosen to add Betta Milk, Pyengana Milk and Meander Valley Dairy to its stable of brands, which will ensure that these well-loved brands remain available to consumers,” TasFoods said in a statement.
Scott Hadley, CEO of TasFoods, said the sale of the businesses and the licensing of Pyengana represent an important strategic step towards simplifying TasFoods and strengthening the company’s balance sheet.
“Since the announcement of the new Strategic Focus in March 2022, TasFoods’ Board and senior management team have continued to assess the divisions and asset base of the company through the lens of where our expertise and core capabilities can add value.”
TasFoods expects the acquisition to be completed by the end of the year.