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Warrnambool Cheese and Butter Factory Company (ASX:WBC) says it has agreed to buy the cheese business of Victoria-based Lion-Dairy & Drinks.
Warrnambool Cheese will pay $137.5 million on a debt-free basis with the deal expected to close at the beginning of May. WCB will then own the cutting & wrapping, sales and distribution operations for Coon, Cracker Barrel and Mil Lel brands.
The Lion-Dairy cheese business employs around 170 people and generates $160 million in sales annually. The acquisition will strengthen WCB’s position in the branded everyday cheese market.
Warrnambool Cheese made a net profit of $25.04 million for the full year ended 31 December 2014.
