Dairy heavyweight Saputo has sold its King Island Dairy business in Australia to two local, unnamed business executives.
Under the agreement terms, all 58 affected employees will have the option to transfer to the new owner, the Canada-headquartered dairy business said.
The sale includes the King Island Dairy facility, the associated brand and two local farms that supply milk.
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 the announcement, Saputo held talks with the Tasmanian state government to identify a more “favourable” outcome.
The purchasing entity is led by two Australian businessmen specialising in supply chain and manufacturing. According to Saputo, 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, said the path to the sale had “not been straightforward” but added the company had taken care to find a buyer “committed to continuing the manufacturing operations and preserving jobs on King Island”.
He added: “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 moves have included closures in Australia and in North America. In June, the company said it was to shut six sites in the US by early 2025.
Additionally, Saputo offloaded 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Last month, Saputo said it had “withdrawn” a key EBITDA target but suggested a new milk-pricing formula in the US would boost profits.
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