KWM Works With Lion On The Sale Of Its Dairy And Drinks Business

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King & Wood Mallesons (KWM) has advised Lion on the sale of the Lion Dairy and Drinks business to China Mengniu Dairy Company Limited (Mengniu).

The sale includes all of Lion's white milk, milk-based beverages, yoghurt, juice and water ice brands and assets. It also includes Lion Dairy and Drinks' International business, and its share of the joint ventures Vitasoy Australia Products and Capitol Chilled Foods Australia, and the licensing agreement for the Yoplait brand. The sale is subject to ACCC and FIRB approvals and other standard closing conditions, and the business will be sold to Mengniu for approximately A$600 million.

Lion was advised by a cross-practice KWM team, which was led by M&A partner Meredith Paynter.

Commenting on the transaction, Meredith said: "It is great to support our longstanding client Lion, and its shareholder Kirin Holdings, to reach this key milestone in the sale, and to assist them to achieve their broader objectives for this significant project."

Other members of the team included partners Scott Bouvier, Sharon Henrick and Malcolm Brennan, senior associates Mark Vanderneut, Christopher Kok and Katie Lewis, and solicitors Lenny Andreev, Rebecca Stanley and Kendy Ding, together with a number of other partners and lawyers who have assisted on all aspects of the sale process.

Earlier in the year, KWM advised on the sale of Lion's specialty cheese business to Saputo Dairy Australia for $A280 million.  Accordingly, the completion of the sale to Mengnui will represent the full divestment of the Dairy and Drinks business.