SAPUTO Dairy Australia announced the sale of King Island Dairy last Friday, March 7.

As part of the agreement, impacted employees will receive an offer to transfer their employment to the new owner to help support the future of King Island Dairy and its renowned specialty cheese products.

Saputo says it has entered a binding agreement to sell the dairy to newly formed entity King Island Dairy 2 Pty Ltd, describing the new buyers as "two experienced Australian businessmen with supply chain and manufacturing expertise" without naming them.

However,  according to the Australian Securities and Investments Commission, the entity was registered on March 3 this year, and lists Melbourne businessmen Nicholas Dobromilsky and Graeme Wilson as its directors.

The new owners are expected to make their own announcement in the weeks ahead.

Here is an excerpt from Saputo’s announcement:

Following last September’s closure announcement, Saputo continued to work collaboratively with the Tasmanian Government as part of ongoing efforts to identify a more favourable outcome. As King Island Dairy’s historic roots are deeply embedded in the region, SDA remained hopeful of finding an alternative solution given the substantial impact on employees and the broader community.

Gerard Lourey, SDA Director of Operations and Supply Chain, said that while the pathway to achieving a sale has not been straightforward, Saputo took great care to find a suitable buyer that we believe is committed to continuing the manufacturing operations and preserving jobs on King Island.

“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite Cheese Store and two local farms that provide a guaranteed milk supply.

“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian Government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.

“While King Island Dairy will not be part of our portfolio moving forward, SDA remains committed to further growing the value of our domestic and premium export products as part of our long-term vision for success in Australia,” he said.

All impacted employees have been advised of the sale, with the sale transaction expected to be completed by mid-year. SDA will work closely with the site team and provide all necessary support to ensure a successful transition to the new owner.