Canadian dairy giant Saputo has sold the King Island Dairy facilities and brand to a new Australian owner.
The dairy is a major employer on the small Bass Strait island and the threat of its closure had been hanging over the community.
What’s next?
All employees are being transferred to the new owner, led by Melbourne businessmen Nicholas Dobromilsky and Graeme Wilson.
Tasmanian cheesemaker King Island Dairy has been sold after more than a year on the market and the threat of closure hanging over it.
Current owner Saputo says it has entered a binding agreement to sell the dairy to newly formed entity King Island Dairy 2 Pty Ltd.
According to the Australian Securities and Investments Commission, the entity was registered on March 3 this year, and lists Melbourne businessmen Nicholas Dobromilsky and Graeme Wilson as its directors.
“The buyer will make their own announcement in the coming days,” Saputo said.
Saputo says the sale includes the King Island Dairy facility, the brand, on-site cheese store and two local farms. (ABC News: Jeremy Story Carter)
Saputo said it had informed staff on King Island in person this morning before announcing the news in an email to all staff.
“The sale includes the King Island Dairy facility and brand, the on-site cheese store and two local farms that provide a guaranteed milk supply,” the email said.
The dairy monolith offered assurances to current staff, saying they would be offered to transfer their employment to the new owner.
King Island Mayor Marcus Blackie was thrilled by the news and highlighted the brand would now be in Australian hands.
“Blessed are the cheesemakers,” he quoted from Monty Python’s Life of Brian.
“I sincerely congratulate the new Australian owners, we look forward to meeting them very soon.
“King Island Dairy has been foreign-owned for 25 years now … it is great to see them return to Australian ownership.”
He said both the brands and facility were in need of an “entrepreneurial” revamp, to ensure the historic brand would continue well into the future.
“I’m extremely proud of the employees … because they held fast and kept the faith. They didn’t panic, they didn’t put the white flag up, they didn’t abandon ship,” Mayor Blackie said.
“It showed potential buyers out there that this is a pretty staunch and pretty credible company that hasn’t given up, that is worth saving and worth the investment.”
Saputo originally wanted to close factory
It follows an announcement last September that Saputo would close the factory after it failed to find a buyer.
The news left the King Island community reeling, with fears it would lose its single largest employer.
At the time, Tasmanian Premier Jeremy Rockliff vowed to find a buyer, and accused the Canadian dairy giant of trying to kill off the brand to limit competition with its other dairy brands.
“It would be a real blow to King Island if the multinational behemoth is planning to walk away from the King Island Diary brand to promote its other brands,” Mr Rockliff said.
“We do not call this behaviour out lightly, but we will not stand idly by while a global company welshes on its responsibility to work with the government for the benefit of Tasmania.”
King Island Dairy cheeses are a familiar sight in most supermarkets. (ABC News: Ebony ten Broeke)
Saputo Dairy Australia director of operations and supply chain Gerard Lourey said the company had remained hopeful it would find an alternative solution after mass outcry at the news.
“We are very pleased to have reached a sale agreement for the buyer,” he said.
“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.”
In a statement posted to social media today, Mr Rockliff said his government had fought to save the company from closure.
“I said that King Island Dairy wouldn’t close on my watch. Well today, we’ve saved it,” the premier said.
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