Bega Cheese confirms IPO plans
Australian cheese manufacturer Bega Cheese has confirmed that it is in the final stages of preparing a $35 million IPO to list on the Australian Securities Exchange.
Bega plans to issue a 15% stake in the company with shares sold at $2 each. The issue will value the company at $254 million.
David Williams from Kidder Williams, an advisor working on the IPO, told just-food yesterday that the company plans to release a prospectus next week.
He said that cheese products manufactured or cut, packed and processed at Bega’s facilities make up approximately 40% of products in the cheese section in Australia’s major supermarkets.
Williams said Bega owns the two largest cheese cutting, packing and processing facilities in the southern hemisphere and its core business is cutting, packaging and processing cheese under long-term contracts for companies such as Fonterra and Kraft Foods.
The company processes some 200,000 tonnes of dairy products each year and is forecasting $1bn in revenue for the 2011 financial year.
It also manufactures infant formula, growing up powders and cream cheese for export, primarily in China and Japan for companies like Mead Johnson and Ingredia.
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