TasFoods divests its Pyengana dairy cheese business for US$1.3M

AUSTRALIA – TasFood has announced plans to divest its Pyengana Dairy business to focus resources on strengthening its poultry division.

The ASX-listed poultry, cheese and pet-food group has entered a non-binding option agreement with major shareholder MSC ATF AgFood Opportunities Fund. 

The company stated that the option could see the Pyengana Dairy artisan cheese business sold to the Fund’s AgFood & Associates for A$2m (US$1.3 million) plus inventory.  

AgFood & Associates, the investment arm of MSC ATF, has expressed willingness to collaborate with other interested parties regarding the acquisition of Pyengana Dairy, which has been underperforming since its acquisition in 2017 as part of TasFoods’ diversification strategy. The company cited challenges in achieving performance targets within its existing capital management framework.

In the statement, TasFoods noted that the current corporate structure is not conducive to the growth and scaling of the Pyengana brand. Management believes that a sale will provide Pyengana Dairy the best opportunity for expansion in both domestic and international markets.

Proceeds from the sale are earmarked to enhance TasFoods’ poultry supply chain, following the company’s recent AUD 1.3 million acquisition of Redbank Poultry in December 2023, executed through its subsidiary, Nichols Hatchery.

If the option is exercised before mid-September, the sale of Pyengana Dairy is anticipated to conclude by October 31, pending shareholder approval in mid-October. During the transition, TasFoods will continue to manage the dairy operation under a paid service agreement.

Irish dairy group Ornua divests UK powder

The news follows Ornua’s announcement of the sale of its powder blending and manufacturing business in the UK.

The business, housed within Ornua Nutrition Ingredients (ONI) in Leek, UK, is set to be sold as a going concern to Roger Wertheim-Aymes, founder of the medical supplement operation Aymes while the financial details of the transaction remain undisclosed.

The Leek facility, with 85 employees, produces a diverse range of products, including dairy ingredients, bakery items, breakfast cereal, sports nutrition, and health and well-being products.

The facility will operate under the trading name Allicio following the completion of the deal. Ornua emphasized that the business will continue to be an essential strategic customer even after the transition.

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