King Island Dairy rescued from closure by Nick Dobromilsky and Graeme Wilson

King Island Dairy, slated for closure and the disappearance of its brand, has been sold to an executive who manages a large plastic pot operation with a dealmaking background.

King Island Dairy has been rescued from closure and sold to two businessmen.

King Island Dairy, the 100-year old cheesemaker that was late last year slated for closure, has been rescued after being sold to two businessmen, one of whom currently manages one of Australia’s largest makers of plastic flower pots, tubes and containers for the nursery industry.

The deal saves the King Island Dairy brand, as well as about 60 jobs.

Once owned by a Japanese brewer and before that listed on the Australian Stock Exchange, the King Island Dairy brand was synonymous with gourmet cheeses as well as a leader in educating Australians about wider varieties beyond the plain block of cheddar.

Questions were raised about the identity of the new owners as Saputo didn’t name the buyers, but it can be revealed they formalised their acquisition ­vehicle only five days ago.

Canadian dairy giant Saputo announced on Friday the sale of King Island Dairy to the two unidentified businessmen and their joint company, King Island Dairy 2 Pty Ltd. Saputo said it would not name them and no purchase price was disclosed.

However, company records lodged with the Australian ­Securities & Investments Commission and obtained by The Australian reveal that the buyer, created on March 3 and based in the outer Melbourne suburb of Wheelers Hill, is partly owned by corporate adviser and finance executive Nick Dobromilsky and Graeme Wilson.

Mr Dobromilsky, 40, and Mr Wilson, 66, are listed as directors of King Island Dairy 2.

Mr Dobromilsky describes himself in his LinkedIn profile as being an “experienced finance and investment professional with over 18 years of experience across private equity, corporate ­finance, investment banking and accounting.”

He has been the manager of Garden City Plastics since March 2023, which is described as Australia’s largest manufacturer and supplier of plastic pots, tubes, tubs, trays, hanging baskets, and flower pot containers to the gardening industry. Mr Dobromilsky is also listed as a director of Olympus Cheese, based in Brisbane, his only known link to the cheese industry. He also worked for merchant banker and agriculture sector specialist David Williams and his firm Kidder Williams from 2013 to 2105, and at Credit Suisse from 2015 to 2016.

Mr Dobromilsky and Mr Wilson – also believed to be part of Garden City Plastics management – were unavailable for comment on Friday.

King Island Dairy has been saved from closure.

Saputo said it was pleased with the sale, securing the jobs on King Island and the future of the King Island brand.

The buyer is “led by two experienced Australian businessmen with supply chain and manufacturing expertise. While Saputo Dairy Australia has disclosed the sale to notify and provide certainty for our employees, the buyer will make their own announcement in the coming days.”

In September, Saputo announced it would end processing dairy products on King Island, located between Tasmania and Victoria, signalling the end for the 100-year-old King Island Dairy brand following a strategic review of the business.

That decision threatened the 60 jobs on the island, where work is hard to come by.

The rescue deal led by Mr Dobromilsky now looks to have saved those 60 jobs and the production facilities on King Island, although the new buyers’ plans for the cheese brand remain unknown.

Saputo Dairy Australia director of operations and supply chain Gerard Lourey said that while the pathway to achieving a sale had not been straightforward, Saputo took great care to find a suitable buyer that it believed was committed to continuing the manufacturing operations and preserving jobs.

“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,” he said.

“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.”

As part of the sale agreement, employees will receive an offer to transfer their employment to the new owner, Saputo said.