AUSTRALIA | Saputo Dairy Australia (SDA) has entered into a binding agreement to sell its King Island Dairy business to King Island Dairy 2 Pty Ltd.
Under the agreement, affected employees will be offered the opportunity to transfer their employment to the new owner, ensuring continuity for the business and its renowned specialty cheese products.
Following the closure announcement in September last year, SDA continued to work closely with the Tasmanian Government to explore alternative solutions. Given King Island Dairy’s deep historical and economic ties to the region, the company remained committed to securing a favourable outcome that would minimise disruption to employees and the local community.
SDA’s director of operations and supply chain, Gerard Lourey, said that while the process of securing a sale had been complex, careful consideration was given to identifying a responsible buyer.
"SDA is pleased to have reached an agreement for the sale of the King Island Dairy facility and brand, along with the on-site Cheese Store and two local farms that provide a guaranteed milk supply.
"The company greatly appreciates the ongoing support of employees, suppliers, customers, the local council, and the Tasmanian Government throughout this challenging period. Their patience, resilience, and collaboration have been invaluable," he said.
The Canadian-owned dairy giant did not name those involved in the new business but stated that it was being led by "two experienced Australian businessmen with supply chain and manufacturing expertise."
"The buyer will make their own announcement in the coming days," Saputo said.
While King Island Dairy will no longer be part of SDA’s portfolio, the company remains focused on strengthening its domestic and premium export product offerings as part of its long-term growth strategy in Australia.
All affected employees have been informed, and the sale is expected to be finalised by mid-year. SDA will work closely with the site team to provide support and ensure a smooth transition to the new owner.
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