On the Street -- Parmalat Takes National's Dairy Assets
May 23/Business Monitor International Ltd. -- In its largest acquisition since the $18 billion accounting scandal which put the dairy giant into administration in 2003, recuperated Italian giant Parmalat has agreed to buy a band of dairy assets from Kirin-owned National Foods in a deal worth A$70 million ($54.6 million U.S.). National Foods is required to sell the assets due to competition concerns arising from its A$910 million ($709.4 million U.S.) takeover of Dairy Farmers, and Parmalat - who missed out in its bid for the latter - looks set to benefit after all.
Parmalat will acquire Dairy Farmers' manufacturing facilities in New South Wales and Australian Capital Territory, while it will also secure some licensing and distribution deals in these states as well as in South Australia. It is estimated that the units that Parmalat will acquire generated revenues of A$200 million ($156 million U.S.) in the 12 months to June 2008, which will give around a 25% boost to Parmalat's Australian revenues (A$796 million [$620.6 million U.S.] in 2008).