Saputo has found a buyer for its renowned King Island Dairy business, which was due to close at the end of June.
The island business will now continue under the new ownership of King Island Dairy 2 Pty Ltd.
While tight-lipped about the new owners’ identities, Saputo described them as “two experienced Australian businessmen with supply chain and manufacturing expertise”.
SDA Director of Operations and Supply Chain Gerard Lourey said the sale will ensure the future of King Island Dairy’s specialty cheese products.
“While the pathway to achieving a sale has not been straightforward, Saputo took great care to find a suitable buyer that we believe is committed to continuing the manufacturing operations and preserving jobs on King Island,” he said.
“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite cheese store and two local farms that provide a guaranteed milk supply.”
Lourey acknowledged the support of employees, suppliers, customers, the local council and the state government throughout the recent uncertain period.
“While King Island Dairy will not be part of our portfolio moving forward, SDA remains committed to further growing the value of our domestic and premium export products as part of our long-term vision for success in Australia,” he said.
The transaction is expected to complete by the middle of the year.
Tasmanian Premier Jeremy Rockliff has welcomed the announcement after previously promising that King Island Dairy “wouldn’t close” on his watch.
“And it won’t be. We’ve secured new buyers for this iconic Tasmanian brand,” he said on Friday.
