Australia’s largest agricultural co-operative Murray Goulburn has announced that it has finalised the acquisition of the $80 million Tasmanian Dairy Products (TDP) facility from Mitsubishi Corporation.
About a year ago, Murray Goulburn increased its stake in the TDP joint venture from 56% to 76%, with Mitsubishi Corporation continuing to hold the remaining 24%.
According to the official announcement, Murray has now assumed 100% ownership after acquiring the remaining 24.1% for a total consideration of $4.8 million from Mitsubishi.
“We thank Mitsubishi for partnering with MG over the past three years as we established a foundation footprint in Tasmania’s dairy industry. Mitsubishi will continue to be an important business partner for MG, following the acquisition. Over the past decade, the Tasmanian dairy industry has grown strongly. With its rich dairy tradition and favourable climate for pasture based farming, Tasmania is an important, strategic dairy region for MG to have a strong presence in,” said MG Managing Director, Gary Helou.
With this acquisition, Murray Goulburn’s operations in Tasmania now include 100% ownership of TDP, a packaging facility at Edith Creek and two MG Trading stores located in Smithton and Deloraine.
Murray Goulburn made a sizeable investment to aid the construction of TDP’s state-of-the-art milk processing facility at Smithton in 2011. The facility began operating in 2012 and now has the capacity to process approximately 250 million litres of milk each year. TDP processed more than 210 million litres of milk last year.