Street Talk

Viplus Dairy looks to cash in on frothy formula industry

Sarah Thompson, Anthony Macdonald and Joyce Moullakis

Mar 16, 2018 — 12.15am

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Street Talk understands the Gippsland, Victoria-based company has hired PwC Australia to scour the market for potential suitors.

Interested parties are being told the company is estimating earnings before interest, tax, depreciation and amortisation will come in at $13 million for calendar 2018. That would suggest a price tag of more than $130 million.

The Viplus Dairy plant, which focuses on milk formula, is in the Toora area of South Gippsland, Victoria. Wayne Taylor

Listed groups Bellamy's Australia and A2 Milk Company are again riding high in the dairy and formula industry, buoyed by strong demand out of China. They could be expected to run the ruler over Viplus which has a manufacturing plant in the Toora area of South Gippsland.

The company's website says it employs 40 people at its manufacturing plant and claims it is the first Australian based producer to receive CFDA approvals in China for infant formula exports.

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It is owned by a handful of individuals via a number of different entities according to ASIC filings, including Dajian Li, Dongmei Hua, Dacan Li and Ane Luo.

Elsewhere, Silicon Valley-based Pivotal Systems Corporation is planning to raise up to $50 million for a potential ASX listing.

Moelis Australia and Shaw and Partners are on deck to manage the global technology company's float which is slated for 2018.

Street Talk understands a raising in the order of $40 million to $50 million is being proposed.

Pivotal has existing production capabilities in China and Korea, and sales offices throughout the region and Japan. Investors may, however, ask why the company is listing in Australia if it only has a limited or no presence here.

Pivotal's website notes it raised $US8 million in new equity funding as part of a Series D round in 2016.

The proposed initial public offering capital raising is expected to help accelerate Pivotal's expansion in Asia as well as beefing up in the United States.