Italy's Parmalat to acquire National Foods' Australian dairy units

22 May 2009

Global milk producer, Italy's Parmalat yesterday signed a deal to buy the Clarence Gardens milk factory, other processing plants and associated depots from National Foods for an approximate A$70 million, increasing its presence in the Australian dairy industry.

"Under the sale, Parmalat Food Products Pty Ltd, a wholly owned subsidiary of Parmalat SpA, will acquire a portfolio of fresh milk assets across these regions, including the Lidcombe and Clarence Gardens manufacturing facilities, licences to market brands and distribution networks in NSW, SA and Australian Capital Territory," Parmalat said in a statement.

The deal follows a requirement by the Australian Competition and Consumer Commission (ACCC) for the factory to be divested by National Foods, following its purchase from the Dairy Farmers Group last year.

The move will shrink the Australian dairy processing industry to two major players, the Italian-owned Parmalat and the Japanese owned National Foods.

Parmalat makes Pauls milk, Vaalia yoghurt and Ice Break flavoured milk.

Parmalat managing director David Lord said the suite of assets fitted perfectly with its long-term plans of his company.

"This acquisition confirms Parmalat's place as a strong eastern seaboard competitor,'' Lord said adding that the expansion would give the company access to 87 per cent of Australian milk consumers.