Offers have landed from private equity firms and strategic suitors for Fonterra’s $2bn-plus business Mainland Group, which could also have an ASX listing.
Bids flood in for Fonterra’s Mainland, as prospects raised of a possible ASX listing
The brands on offer include Anchor and Western Star butter, Mainland and Perfect Italiano cheeses.

Offers have landed from private equity firms and strategic suitors for Fonterra’s $2bn-plus business Mainland Group, which could also have an ASX listing.
Bids were due at the end of last month in the Craigs, JPMorgan and Jarden-advised contest.
DataRoom understands bidders include France’s dairy giant Lactalis, advised by Rothschild, and the Australian-listed Bega, advised by Kidder Williams.
Sources say that Swiss investment bank UBS could also be jointly advising Bega, which is listed here with a $1.6bn market value and may raise equity to buy Mainland.
Bega licences the use of its brands to Fonterra, which may give it pre-emptive rights in a sale, and Fonterra’s advisers have been seeking legal advice on the matter.
Kohlberg Kravis Roberts could also be around the hoop, while The Carlyle Group is said to be on the fringes.
Danone is understood to have been in the mix but is only bidding for part of the business, so is unlikely to progress.
The understanding is that Fonterra and its advisers are taking a hard line about breaking up the company, which means groups like Danone and Blackstone that earlier was only keen on Southeast Asia probably won’t make the cut.
Bidders are competing for the business as equity investors are being warmed up for a potential float of Mainland Group, should that prove to be a better option. On the promotional tour with Mainland Group chief executive-elect Rene Dedoncker investors were told Mainland generates $NZ4.9bn in annual revenue and $NZ200m of annual earnings before interest and tax, with margins of about 4 per cent.
It has 15 manufacturing sites and sells in more than 20 countries.
Its Oceania business includes consumer brands and a food service business, along with an ingredients business in New Zealand. It generated $NZ498m of gross profit for 2024.
Southeast Asia’s consumer business generated $NZ203m, the consumer and food service business in Sri Lanka $NZ106m and the Middle East consumer business $NZ41m.
Excluding Sri Lanka, Mainland has a compound annual growth rate of 7 per cent.
Australian and NZ brands on offer include Anchor and Western Star butter, Mainland and Perfect Italiano cheeses.
The $1.8bn Bega is understood to be a motivated buyer for at least some of the brands, but would probably need to bid with a joint venture partner, given the size of the transaction.
The New Zealand part of the offering is considered one of the more attractive parts of the business from an earnings margin perspective, given the low milk supply cost base there.
Currently, Australian farm gate milk prices are higher than those in NZ, in what has been described as an awkward dynamic.
The sale is designed to return funds to Fonterra’s co-operative owners in New Zealand to invest in their own dairy farms there.

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