Fonterra has sold its former West Australian dairy business Brownes to an equity investment firm, DairyWest, a wholly-owned subsidiary of Sydney-based Archer Capital for an undisclosed price.Brownes has two factories in West Australia in Balcatta and Brun
Fonterra has sold its former West Australian dairy business Brownes to an equity investment firm, DairyWest, a wholly-owned subsidiary of Sydney-based Archer Capital for an undisclosed price.
Brownes has two factories in West Australia in Balcatta and Brunswick.
All of Brownes business, which employs around 300 people, will be moved over to DairyWest subject to the transfer of key contracts.
The acquisition was expected to be completed by early next year, a Perth News Ltd website reported today.
Fonterra's Australian managing director John Doumani said the decision to sell Brownes was in line with the company's strategic direction in Australia.
"Fundamentally Brownes is a regional business and it is not receiving the right level of focus within Fonterra given our decision to focus on national leadership in our priority categories of cheese, spreads, yoghurts and dairy desserts," he said.
The Brownes business will be better served as a stand-alone entity, Mr Doumani said, and Fonterra could continue to grow its national brands, Mainland, Bega, Perfect Italiano, Western Star, Nestle Ski and Nestle Diet.
In April last year, Fonterra sold the Peter's brand in WA to Nestle, but retained the Brownes business.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
