Gippsland dairy company could be latest foreign takeover

Longwarry Food Park is reportedly seeing interest from foreign companies looking to acquire the successful dairy manufacturer.

Longwarry, which was for Environmental Solution of the year winner at the Endeavour Awards in May, has reportedly been the subject of indicative bids received by Rothschild and Rabobank.

Fairfax reports that the company could sell for up to $150 million.

“We have had quite a bit of interest and ­unsolicited offers around once a week," owner Rakesh Aggarwal told The Australian Financial Review.

"Dairy is doing great. Demand is strong and the industry is doing well. I think it's very exciting for the ­business."

Interest in acquiring the Gippsland-based company was first reported in The AFR’s Street Talk column yesterday.

Longwarry currently sells products through Australia’s three major retailers, but the bulk of its revenue – about 80 per cent – comes from its exports to over 30 countries.

Aggarwal bought a “sick” Bonlac factory in 2001 and has grown Longwarry from being a one-product company to a multi-product operation processing about 100 million litres of milk a year.

The company’s owner would not comment on exactly who was interested, though confirmed Asian, European and local bidders were considering Longwarry.

Image: http://www.longwarry.com/