Warrnambool Cheese and Butter to acquire Coon, Cracker Barrel brands

Warrnambool Cheese and Butter (WCB) has entered into an agreement to acquire the everyday cheese business (EDC Business) of Lion-Dairy & Drinks for $137 million.

EDC Business operations include cutting and wrapping, distribution, sales and marketing, and intellectual property associated with the COON, Cracker Barrel, Mil Lel and Fred Walker brands. WCB already produces the cheese for these brands, and the cut and wrap operations of the EDC Business are located in a building adjacent to WCB’s cheese manufacturing facility at Allansford.

Canada’s Saputo, one of the world’s biggest dairy companies, which holds 87.92% of the shares in WCB, has advised that it will vote its shares in favour of the transaction. WCB expects to convene a shareholder meeting to be held by early May to consider the transaction.