PARMALAT has won the race to secure National Foods' milk manufacturing operations and drinking milk contracts in South Australia and NSW.
Parmalat Food Products will now take over the South Australian processing plant at Clarence Gardens and the Lidcombe, NSW, site.
Also included in the purchase was the Dairy Farmers white milk brand in South Australia and the license for the Pura Milk brand and the Daisy Fresh white milk brands in NSW and ACT.
The two milk processors have a binding agreement of sale subject to approval from the Australian Competition and Consumer Commission.
National Foods was required by the ACCC to shed some drinking milk contracts and manufacturing plants after it bought Dairy Farmers last year.
The manufacturing operations had a combined revenue of about $200 million in the 12 months to June 30 last year and, at that date, tangible assets of more than $60 million.
Parmalat will pay $70 million for the National Foods assets as well as take on some of the debt. Offers of employment will be made to about 95 per cent of the staff working within the National Foods operations.
Murray Goulburn also bid for the sites and drinking milk contracts, however, chairman Ian MacAulay said he would not comment on National Foods' decision.
