Beston Sells its Dairy Farms to Aurora for $40.4 Million

  • Jun 11, 2020 AEST
  • Team Kalkine

Beston Global Food Company Limited (ASX:BFC) announced an agreement with Aurora Diaries for the sale of Beston’s dairy farms in Mount Gambier to Aurora for $40.4 million in cash. The highlights from the transaction are as follows:

  • Transaction secures 100% of milk supply from dairy farms for 10 years, with an option of extension
  • Sale proceeds to reduce debt (to around 10% gearing) and fund Mozzarella and Lactoferrin production expansion
  • Transaction likely to conclude by 30 September 2020
  • Continues the transition to a higher margin cash generating dairy business

The transaction accomplishes BFC’s strategic objectives of issuing capital for re-investment in higher returning dairy factory assets, whilst securing long term milk supply from the farms.

 


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