Bega Cheese is selling one of its Tatura Milk spray dryers to help fund its $460 million purchase of Vegemite and other food businesses announced in January.
Bega will also sell its infant formula finishing plant at Derrimut to Mead Jonson Nutrition.
As a part of the transaction Bega Cheese has secured a 10 year service and access agreement with Mead Johnson for the spray dryer and finishing plant.
Bega Cheese’s Executive Chairman, Mr Barry Irvin said the sale of the dryer and finishing plant together with the ongoing relationship with Mead Johnson is strategically and financially important for Bega Cheese.
‘‘It secures revenue streams from these assets and releases capital which will be used to fund our recent purchase of Mondelez’ Australian grocery business including Vegemite.”