The Chinese company behind the $1.5 billion takeover of organic infant formula maker Bellamy’s has agreed to buy another of Australia’s biggest dairy operations.
- Japanese-owned Lion plans to sell its dairy business (including brands Dairy Farmers and Pura) for $600m
- The buyer is China Mengniu Dairy, which recently bought Bellamy’s for $1.5b
- Earlier this year, Lion sold its its cheese business to Saputo for $280m
China Mengniu Dairy will pay Japanese beverage giant Kirin $600 million to take over its Lion Dairy & Drinks portfolio, the company said on Monday.
The Lion brands include several iconic brands including Dairy Farmers, Masters and Pura milk.
Its portfolio also includes Dare and Farmers Union iced coffee; Big M, Dairy Farmers and Pura Classic flavoured milk; Vitasoy soy milk and coconut milk; juice brands Daily Juice, The Juice Brothers and Berri; and Yoplait yogurt, under licence.
Lion has been trying to sell its dairy portfolio since October 2018, when it decided to concentrate on expanding its beer business including James Squire, Little Creatures, Tooheys and XXXX.
The company said it decided to approach Mengniu Dairy after reaching an agreement in April to sell the specialty cheese division of Lion Dairy & Drinks to Saputo Dairy for $280 million.