Dairy heavyweight Saputo has successfully sold its King Island Dairy business in Australia to two local, unnamed business executives.
Under the terms of this agreement, all 58 affected employees have the option to transfer to the new owner. The Canada-headquartered dairy organization emphasized this approach.
The transaction includes the King Island Dairy facility, the associated brand, and two local farms that supply milk to the facility.
Notably, the Tasmanian operation has been under review since 2023. In September, Saputo announced it would close the facility and retire the associated cheese brand.
Following this announcement, Saputo engaged in discussions with the Tasmanian state government to seek a more “favourable” outcome.
The company revealed that the sale aimed to “provide certainty” for employees during this transitional period.
The buyer’s entity is led by two Australian businessmen specializing in supply chain and manufacturing. Saputo indicated that the new owners are expected to make their own announcement in the coming days.
Gerard Lourey, operations and supply chain director for Saputo in Australia, stated that the path to the sale had “not been straightforward.” However, he added that the company was diligent in selecting a buyer “committed to continuing the manufacturing operations and preserving jobs on King Island.”
He further commented, “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.”
Saputo’s recent strategic moves have included closures in both Australia and North America. In June, the company announced plans to shut six sites in the US by early 2025.
Additionally, Saputo divested other Australian facilities, including two milk processing plants—the Erskine Park site in New South Wales and the Laverton facility in Victoria—to retailer Coles Group.
Last month, Saputo disclosed it had “withdrawn” a key EBITDA target, but anticipated a new milk-pricing formula in the US would enhance profit margins.
