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United Dairy Power sold for $70m

Australia’s biggest privately-owned dairy processor, United Dairy Power, has been sold to Hong Kong-based businessman William Hui for approximately $70 million.

According to theland.com.au, Hui is chairman and a major shareholder in the CD, DVD and video cassette manufacturer Swing Media Technology and was attracted to UDP because of the growing demand in Asia for milk powders, cheeses, infant formula and other dairy products.

The high quality products generated by Australia’s dairy industry, combined with its food safety standards and proximity to Asia make it an appealing investment, and UDP’s acquisition comes less than a week after Canadian firm Saputo snapped up a 77 percent majority in Warrnambool Cheese and Butter.

UDP operates in South Australia and Victoria and generates annual sales of more than $200 million and profits of more than $15 million. Previous to its sale to Hui, it was wholly owned by its chief executive and founder, Tony Esposito, who, it’s reported, will remain involved with the business.

 

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