- Aurora Dairies has entered an agreement with Beston Global Food Company (BFC) to acquire its dairy farms for $40.4 million in cash
- Under this agreement, Beston Global will receive all milk from the farms, which currently produce around 17 million litres per year, for a 10-year period
- This transaction allows the company to focus on its strategic growth opportunities, reduce its debt, and strengthen its balance sheet
- Beston Global has skyrocketed 40 per cent and shares are trading for 7.7 cents each
Aurora Dairies has entered an agreement with Beston Global Food Company (BFC) to acquire its dairy farms for $40.4 million in cash.
This transaction allows Beston Global to focus on its strategic growth opportunities, reduce its debt, and strengthen its balance sheet.
“The sale of our dairy farms is an important milestone in implementing the strategic initiatives outlined at Beston’s 2019 Annual General Meeting, and continues the journey toward a streamlined, cash-generating company,” Chairman Dr Roger Sexton said.
“The company’s focus, as it moves into its next stage of growth and development, is on increasing the utilisation of its production capacities and generating enhanced margins with a product mix based around higher production of Mozzarella and Lactoferrin,” he added.
Under this agreement, Beston Global will receive all milk from the farms, which currently produce around 17 million litres a year, over a 10-year period. An option also exists to expand this period.
“We are pleased to be forging this relationship with Aurora who shares Beston’s desire to invest in growing the milk pool in South Australia over time,” Chief Executive Jonathan Hicks commented.
“The transaction will ensure continuity of milk supply to our cheese production facilities at Murray Bridge and Jervois and continue our focus on increasing output and improving efficiencies within the business,” he said.
Beston Global has skyrocketed 40 per cent and shares are trading for 7.7 cents each at 12:02 pm AEST.