The a2 Milk Company has confirmed that a US milk processing giant has submitted a joint expression of interest in acquiring all of its shares.
a2 Milk today said it had received an indicative, conditional and non-binding expression of interest from Dean Foods and Freedom Foods, which it would now evaluate.
“The board is continuing to seek further information in order to evaluate the proposal and will update the market on further developments as appropriate,” the company said in a statement.
Dean Foods is one of the largest dairy processors in the US and it distributes milk under more than 50 local and regional dairy brands and private labels, as well as ice cream, cultured products, juices, teas, bottled water and other products.
The expression of interest follows the recent launch of a2 Milk into Californian supermarkets.
The a2 Milk brand is the only cows' milk that is free from the A1 protein which is said to cause digestive problems in some people, and it has captured almost ten per cent of the Australian fresh milk market.
The company, which is dual listed in New Zealand and Australia, was poised for an Australian capital raising to fund further expansion, which will not proceed if the acquisition goes through.
Freedom Foods already owns around 19 per cent of The a2 Milk Company. The acquisition would need the approval of the government’s overseas investment office.
