Chinese firm eyes purchase of Australia's United Dairy
United Dairy Power, the largest private dairy supplier in Australia, may be sold within weeks to Manassen Foods. Previous efforts to sell the Melbourne milk processor to other companies had failed, according to the Business Spectator.
Founded by Tony Esposito in 1999, United Dairy reached $125 million in its 2011 sales. The milk aggregator's cash flow has led potential buyers to peg the company's market value between $30 million to $40 million, the report detailed.
Manassen Foods may be the frontrunner in the acquisition of United Dairy. Manassen is a unit of Bright Food Group Ltd of China, the report said.
Previous efforts to sell the Melbourne company have failed because of concerns regarding the contracts with buyers and dairy farmers. The firm's two factories in South Australia are not considered desirable because they are not located in a prime dairy catchment, the report explained.
Still, Asian firms know that their increasingly wealthy customers want safe dairy products for their children. Australian dairy suppliers are known for this quality, the Business Spectator said in its report.