SYDNEY, AUSTRALIA: Bega Cheese Limited (ASX:BGA) has announced that it has entered into a binding Business Sale Agreement to acquire the businesses and certain assets of Betta Milk and Meander Valley Dairy from TasFoods Limited (ASX:TFL).

The acquisition includes a perpetual, royalty-free license to use the Pyengana Dairy brand for milk and cream products in Australia, subject to certain conditions, including the ACCC not objecting to the acquisition.

The total purchase price is $11.0m plus inventory.

Bega Group’s Tasmanian dairy business has operated in Lenah Valley for over a century, and this acquisition is in line with its strategy to build its portfolio of branded products and improve its offering of local brands for Tasmanians.

Bega Group’s CEO, Pete Findlay, commented on the acquisition, saying: “We recognize the quality in the Betta Milk, Meander Valley Dairy and Pyengana milk brands and we are delighted to add these Tasmanian brands to our portfolio. Betta Milk is a fantastic regional brand that has been a household name in Tasmania for over 65 years and acquiring these brands supports our ambitions to become a great Australian food company.”

Bega Group is advised by Kidder Williams Limited and Addisons Lawyers.