A handful of Australia’s most iconic brands have returned home, after being bought by Bega Cheese in a $534 million deal. The massive move doubled the size of the company, with the return of big brands in the dairy and drinks sector turning Bega into a $3 billion business.
The company has now finalised the acquisition of Lion Dairy & Drinks, which included the brands Dairy Farmers, Dare, Pura, Farmers Union, Vitasoy, Masters, Big M, Daily Juice, The Juice Brothers, Yoplait and Berri. The brands are to join other big names that already sit under under Bega’s umbrella, including Bega Cheese, B honey and Vegemite.
In a statement to the ASX, Bega’s executive chairman Barry Irvin described the acquisition as a “significant day” in the company’s history. “This goal of creating a great Australian food company with the capacity to service our customers in Australia and around the world took a major step forward today.”
The deal was officially signed in November last year, after Chinese firm Mengniu Dairy Company withdrew its bid amid worsening trade relations between Australia and China. The offer was reportedly worth $600 million, which was said to be almost $70 million more than Bega’s price.
According to reports by the Australian Financial Review at the time, Treasurer Josh Frydenberg moved to reject the offer on national security grounds in August last year, despite the deal between the previous owner, Japanese company Kirin, and Mengniu Dairy being signed in 2019.
At the time of the sale, Lion CEO Stuart Irvine supported the move to Bega saying, “The sale will see Bega, as an established dairy and food company with more than 120 years of heritage, well placed to drive the business forward given its deep dairy capabilities and strong commitment to iconic Australian brands and the local dairy industry.”
But the big-name dairy and juice brands aren’t the only ones to return to Australian soil, with beloved shoe brand RM Williams officially coming back into local ownership in October last year. The brand, which is known for being a national icon, was bought out by mining magnate Andrew “Twiggy” Forrest in a deal that was believed to be worth $190 million.
“It always rankled a bit that this great Australian, Reginald Murray Williams, kicked off this fantastic organisation, employed so many people, and then it had to go to overseas hands,” he said. “I’m so glad it’s now back, and I’d have to say the [Forrest] family has a big solid lump in its throat about returning RM Williams back to Australia.”