Sounds like the asking price would be between $100-200M.
Text from the article:
Only months after John Wylie’s Tanarra snapped up five:am, another yoghurt business is set to hit the market.
This time it is the Jalna Dairy Foods that is believed to be coming up for sale.
The business that is among one of the country’s most well known Greek yoghurt brands is understood to have hired advisory firm PwC for the sale.
Jalna was started more than 40 years ago by a Polish Jewish migrant in 1959 and is owned by the McLaren family who purchased the company in 1978 for $350,000.It has grown to become a well recognised brand of yoghurt sold by major supermarkets such as Woolworths and Coles.
DataRoom understands that Jalna’s turnover is the order of about $130m, and typically, the earnings margins on yoghurt production and distribution are about 6 per cent.
As well as the yoghurt business that includes a plastics factory which manufactures yoghurt tubs and lids, it also owns a 2000 acre dairy farm in Northern Victoria, thought to be worth about $12m.
Some believe that the business, which counts former Fonterra executive as its general manager, Garry Mudford, could sell for between $100m and $200m.
The company has about 80 staff and produces a growing range of yoghurt brands.
It produces a range of premium pot set yoghurts using milk from a biodynamic organic farm or from family-owned farms in the Goulburn Valley in Victoria.
Jalna yoghurts have traditionally benefited from product differentiation, as all of its products have various probiotic quantities, according to IBISWorld.It was the first yoghurt manufacturer to introduce this range in Australia.
The company has developed fat free and low-fat products, organic yoghurt and the a2 yoghurt brand, which is made with milk naturally rich in the A2 protein.
Yoghurt production industry has expanded over the past five years thanks to consumer perceptions of the industry products as healthy food options and manufacturers have boosted production volumes to meet the demand.
Premium products such as Greek yoghurts attract a higher sales price and help to boost industry revenue.
Despite rising competition, the number of industry enterprises has slightly increased over the past five years, as the number of small, specialised manufacturers producing premium niche yoghurts has risen.
IBISWorld forecasts has industry revenue forecast to grow 0.9 per cent annually over the five years through 2025-26 to reach $1.84bn.
The expected sale comes after Mr Wylie’s Tanarra purchased five:am in May from PZ Cussons for a price believed to be around $12m. The business was purchased through Tanarra’s dairy production business Barambah Organics.
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