Tasmanian cheesemaker King Island Dairy has been sold after more than a year on the market and the threat of closure hanging over it.
Current owner Saputo says it has entered a binding agreement to sell the dairy to newly formed entity King Island Dairy 2 Pty Ltd.
Saputo did not name those involved in the new entity but said it was being led by “two experienced Australian businessmen with supply chain and manufacturing expertise”.
“The buyer will make their own announcement in the coming days,” Saputo said.
Saputo says the sale includes the King Island Dairy facility, the brand, on-site cheese store and two local farms.
(ABC News: Jeremy Story Carter)
Saputo said it had informed staff on King Island in person this morning before announcing the news in an email to all staff.
“The sale includes the King Island Dairy facility and brand, the on-site cheese store and two local farms that provide a guaranteed milk supply,” the email said.
The dairy monolith offered assurances to current staff, saying they would be offered to transfer their employment to the new owner.
Saputo originally wanted to close factory
It follows an announcement last September that Saputo would close the factory after it failed to find a buyer.
The news left the King Island community reeling, with fears it would lose its single largest employer.
At the time, Tasmanian Premier Jeremy Rockliff vowed to find a buyer, and accused the Canadian dairy giant of trying to kill off the brand to limit competition with its other dairy brands.
“It would be a real blow to King Island if the multinational behemoth is planning to walk away from the King Island Diary brand to promote its other brands,” Mr Rockliff said.
“We do not call this behaviour out lightly, but we will not stand idly by while a global company welshes on its responsibility to work with the government for the benefit of Tasmania.”
King Island Dairy cheeses are a familiar sight in most supermarkets. (ABC News: Ebony ten Broeke)
Saputo Dairy Australia director of operations and supply chain Gerard Lourey said the company had remained hopeful it would find an alternative solution after mass outcry at the news.
“We are very pleased to have reached a sale agreement for the buyer,” he said.
“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.”
In a short statement posted to social media today, Mr Rockliff said:
“I said that King Island Dairy wouldn’t close on my watch. Well today, we’ve saved it.”
