Canadian dairy company Saputo will acquire the specialized cheese business of Australian Lion Dairy & Drinks.

A Montreal cheese maker will pay Australian $ 280 million ($ 196.9 million) for an assortment of Lion cheeses sold under various brands, including South Cape, Tasmanian Heritage, Mersey Valley and King Island Dairy.

The acquisition also includes two manufacturing facilities in Burnie and King Island, Tasmania, employing about 400 people. In 2018, the related business generated revenue of approximately 192 million Australian dollars (134.9 million US dollars).

This move strengthens Saputo's presence in Australia, 18 months after he agreed to pay $ 1 billion for Murray Gulburn’s struggling dairy business. This deal followed months of lengthy speculation about the future of Murray Gulburn and complemented the 2014 acquisition of Saputo by Warrnambool Cheese & Butter.

A statement released by Saputo states: “The specialized cheese business of Lion Dairy & Drinks will allow the Australian dairy division of Saputo to further diversify its product portfolio, complementing its ongoing operations.”