The Murray Goulburn Co-operative Co. Limited (MG) has announced its first move towards an anticipated $500 million unit trust listing on the Australian stock exchange as it seeks funds to expand production aimed at Asia for Devondale long-life milk, infant formula, and its cheese and foodservice businesses.
MG managing director Gary Helou has announced MG’s acquisition of leading foodservice brand Caboolture cheese and some processing equipment from United Dairy Power (UDP).
‘Caboolture is a foodservice market leading shredded mozzarella brand, mainly used in pizza restaurants. The strategic integration of the Caboolture brand into our growing food service business will strengthen MG’s position in this segment,’ he said.
MG is Australia’s largest dairy exporter and produces brands such as Devondale milk, butter and cheese; Table Cove milk; Barista’s Own milk; Liddell lactose-free dairy drinks; and, Fast Start breakfast drinks, ingredient and nutritional products, and foodservice products.
MG issued a notice for an Extraordinary General Meeting to vote on a new capital structure, to be held in Melbourne on 8 May 2015.
MG chairman Philip Tracy said: ‘After more than 12 months of consultation and discussion with our suppliers, we have arrived at a historic moment. At stake is our ambition for MG to be a world-class dairy foods business for generations to come.
‘The recommended capital structure will ensure suppliers retain 100% control of MG while providing the strong foundations and stable capital base required to pursue growth opportunities and deliver a sustainable increase in the farmgate milk price for suppliers.’
MG managing director Gary Helou said that MG will use the capital raised to invest in world leading manufacturing and supply chain capabilities to improve efficiencies and increase market reach in key growth categories including consumer cheese, dairy beverages and nutritional powders.