Fonterra buys assets of Tamar Valley Dairy

Fonterra, a New Zealand-based multinational dairy co-operative, has finalised the acquisition of Tamar Valley Dairy, a Tasmanian yoghurt producer that entered administration in August.

The acquisition includes processing equipment, the related services, and intellectual property and trademark for the Tamar Valley Dairy brand, which supplies branded products to Coles as well as house brands to Aldi supermarkets.

As per the deal, 122 employees at Tamar Valley Dairy will be moved to Fonterra to ensure continuity of operations and the long-term sustainability of the business.

Fonterra is working with Deloitte Restructuring Services to complete the acquisition.

Fonterra Australia managing director Judith Swales said, "We are now working hard to fully integrate Tamar Valley Dairy into our manufacturing footprint to create greater efficiencies and scale.

"This acquisition strengthens Fonterra’s position as a leader in the Australian dairy industry, and complements our existing yoghurt portfolio, which includes one of Australia’s most loved and market-leading yoghurts, Nestlé SKI."

"We will continue to work closely with all stakeholders to provide stability and continuity for the business, the wider community and maintain Tamar Valley Dairy’s history of innovation," Swales added.

Fonterra currently operates two manufacturing facilities at Spreyton and Wynyard in Tasmania that process over half of the state’s milk.

The company procures more than 500 million litres of milk from about 260 dairy farms each year.