Bega to shell out $12m for peanut grower

BEGA Cheese is offering nearly $12 million to take over Queensland peanut grower Peanut Company of Australia to give the dairy processor new supplies of Australian-grown peanuts for its own peanut butter operations.

BEGA Cheese is offering nearly $12 million to take over Queensland peanut grower Peanut Company of Australia to give the dairy processor new supplies of Australian-grown peanuts for its own peanut butter operations.

Bega is seeking to become a broader food company and in July finalised the purchase a suite of food products, including Vegemite and Kraft peanut butter from global food giant Mondelez International.

“The acquisition of PCA will help grow the supply of Australian-grown peanuts for the manufacture of peanut butter at our Port Melbourne factory and supply to other PCA customers,” Bega chairman Barry Irvin said on Friday.

“We have plans to increase the domestic supply of peanuts by working with farmers to expand peanut plantings and production.”

PCA is a public unlisted company located based in Kingaroy in Queensland, Australia’s peanut capital.

Bega said PCA has been Australia’s leading supplier of locally grown peanuts to domestic and overseas customers for more than 90 years.

Under the takeover offer, Bega will acquire a 19.99 per cent stake in PCA for $1.9 million, and then make an unconditional $10 million takeover bid to acquire all the shares not already held by Bega.