Mead Johnson acquires Australian firm's drying, finishing business

GLENVIEW - Mead Johnson Nutrition Co. said it will acquire the spray drying and finishing capabilities in Australia from Bega Cheese Limited, one of Australia's leading dairy product companies.

Terms of the acquisition were not announced.

The deal builds on a long and successful relationship between the two companies, as Bega has been a certified ingredient supplier for MJN products since 2009.

"We believe that supply chain flexibility is important in the pediatric nutrition category," said Kasper Jakobsen, president and chief executive officer. "This acquisition further strengthens our ability to protect and expand our growth in China by creating both additional capacity and the ability to adapt to a changing regulatory environment."

Bega Cheese employs over 1,700 people and the company has evolved from a localized cooperative into an international dairy company. The company made headlines in January by acquiring the Vegemite brand - a favorite sandwich spread among Australians - from Deerfield-based Mondlez International for roughly $345.3 million.

"Bega is known the world over for its pure, high-quality dairy sourcing and its environmentally responsible operations," noted Jeff Jobe, Senior Vice President - Global Operations. "These outstanding facilities - with which we are very familiar - are a perfect fit for our global supply chain network, which is built on our uncompromising commitment to scientific rigor and product quality.

The transaction is expected to close in the second quarter of 2017.

Mead Johnson earlier this month was acquired by U.K.-based consumer health and hygiene company Reckitt Benckiser Group in a deal valued at $17.9 billion.