Warrnambool Cheese and Butter (WCB) is set to fork out $137.5 million for Lion's everyday cheese business (EDC), which includes the Coon and Cracker Barrel brands.
Lion's EDC business is based in Victoria, and its operations include cutting and wrapping, distribution, sales and marketing and intellectual property associated with the Coon, Cracker Barrel, Mil Lel and Fred Walker brands.
Lion is retaining its specialty cheese division which includes brands like South Cape, Tasmanian Heritage, King Island and Mersey Valley. It recently invested in a new cheese making facility called The Heritage, in Burnie, Tasmania to position it to innovate and further grow this category.
“The transaction will enable WCB to increase its presence in consumer branded everyday cheese products segment in Australia, with strong market positions in this segment,” said WCB, which is now owned by Canadian dairy giant Saputo.
The cut and wrap operations of Lion's EDC business are already located in a building owned by WCB right next to its own cheese manufacturing facility at Allansford.
The transaction, which is subject to the usual conditions, is expected to close at the beginning of May.
