Identity of Jervois dairy factory’s potential buyer revealed

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A Japanese company is poised to purchase the Beston Global Food Company’s cheese factory at Jervois, safeguarding dozens of local jobs there.

Beston revealed on Thursday, in response to “recent media articles” including by Murray Bridge News, that Megmilk Snow Brand was the company which had recently made a non-binding offer for the factory.

The foreign firm is one of Japan’s biggest dairy companies, worth $1.7 billion and with assets around the world, including a controlling stake in Adelaide Hills cheese producers Udder Delights.

Beston had been hinting at a sale for almost three months.

Its shares had been placed in a trading halt on the Australian Stock Exchange on July 1 pending an announcement about its future, amid challenging market conditions and cash flow problems.

In the weeks after that, as Murray Bridge News reported last month, Beston fielded several expressions of interest in the Jervois factory where it produces mozzarella cheese and lactoferrin, a nutraceutical product.

If presented in a binding form, the Megmilk Snow Brand offer would be subject to bank and shareholder approvals.

“The board of BFC is working through the conditions of the offer, discussing further with Megmilk Snow Brand to obtain clarification on a number of matters, including total purchase price, and discussing with the company’s bankers,” Beston said in a statement.

The statement did not indicate whether or not the company’s Murray Bridge factory would also be included in any sale.

The Beston Global Food Company is South Australia’s largest dairy company, and provides employment to almost 300 workers and contractors.

It took over both Murraylands factories after the collapse of their previous owner, UDP, in 2015.

• More information: Visit snowbrand.com.au or bestonglobalfoods.com.au.