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Listen to Our Podcast It will now push on with the retail component of the entitlement offer, which aims to raise a further $117 million. In addition to this, Lion Dairy & Drinks has Australia’s largest national cold chain distribution network supplying food service and convenience stores. Click here to access the stock code, 3,500-word analysis and founder interview. Bega Cheese Ltd (ASX:BGA) announced some major acquisition news about Lion Dairy. The vertical integration, however, is where the significant cost savings will be driven from. ... ASX … The addition of juice products from Lion (through brands such as Berri, Mildura and Just Juice) adds some diversification away from milk-based products, which can be cyclical based on supply constraints. After studying economics at university back home in the United Kingdom, James came to live in Australia and managed to land a job at an Australian fund manager. Companies such as Bega are ultimately at the mercy of their input costs (milk prices). Here’s why…. Every year we purchase around one billion litres of milk from over 550 Australian dairy farmers, and crush approx. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Bega is involved in receiving, processing, manufacturing and distributing dairy products in Australia. The Motley Fool Australia » Share Gainers » Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition, James Mickleboro | November 27, 2020 10:53am | More on: BGA. Since deregulation in 2000-01, the government has had no legislative control over the price that milk processing companies pay farmers for milk. The raising will be undertaken at an offer price of $4.60, which represents a 9% discount to Bega’s last traded price of $5.06. This will bring the total raised to $401 million. Customer Sales and Service. Bega has been around since 1890 and originally commenced as a dairy cooperative. Lion Dairy acquisition. It also has a national manufacturing footprint comprising 13 sites. Indicative offers for the $500 million-odd Lion Dairy and Drinks – which makes and sells milk-based drinks, yoghurts and juices – landed on Lion and adviser Deutsche Bank's desk a fortnight ago and the … Outside of reading and researching he spends many a late night watching the English Premier League and Seinfeld reruns. The Bega Cheese Ltd (ASX: BGA) share price is soaring today following news the Aussie dairy company will acquire Lion Dairy & Drink. See how you can find out the name of this stock. Patrick has a Bachelor of Business Management / Commerce from the University of Queensland. In addition to the acquisition price, Bega expects to … Lion Dairy & Drinks (LD&D Milk Pty Ltd and LD&D Foods Pty Ltd), is a subsidiary of Australian diversified food company Bega Cheese.. LD&D's factories (which carry the "Pura" branding) are located in: Chelsea Heights, Melbourne; Salisbury, Adelaide; Bentley, Perth; These sites are also printed on the back of all fresh milk bottles in Victoria, South Australia and Western Australia respectively. The Bega Cheese Ltd (ASX: BGA) share price has returned from its trading halt and is surging higher on Friday. The Motley Fool Australia has no position in any of the stocks mentioned. .fool-ecap.fool-ecap-id-19.fool-ecap-type-vanilla {background: #fff7c4;} aside section .fool-ecap-id-19.fool-ecap-type-vanilla h3 {font-size: 1.6em;} p.ecap-disclaimer {font-size: 0.6em!important;}div.fool-ecap.fool-ecap-id-19 form {position: relative;text-align: center;margin: .2em 1em;}.fool-ecap.fool-ecap-id-19 p.ecap-disclaimer {margin-left: 0px;} .fool-ecap.fool-ecap-id-19 p.above-email{ margin-bottom: 0px;text-align:center;} div.fool-ecap.fool-ecap-id-19 p {color: #464646;}.fool-ecap-type-vanilla.fool-ecap-id-19 h3 {color: #404040;display: block !important;}.fool-ecap-type-vanilla.fool-ecap-id-19 .ecap-disclaimer{color: #484848 !important;}.fool-ecap-id-19.fool-ecap-type-vanilla h3.title{display:none !important;} .fool-ecap.fool-ecap-id-19.fool-ecap-type-vanilla{ margin-bottom: 10px;}.fool-ecap-type-vanilla.fool-ecap-id-19 input[type="submit"] { margin: .5rem 0 .5rem !important;}.fool-ecap.fool-ecap-id-19 img {display: inline;}. The deal with Lion is expected to double the total revenue of Bega Cheese to nearly A$3 billion in the current fiscal as against A$1.49billionin FY20. These include milk-based beverages such as Dare and Farmers Union, Yoplait yoghurts, Pura milk, and Juice Brothers juices. In this FREE STOCK REPORT, Scott Phillips just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. Bega Cheese (ASX:BGA) shares rise on Lion Dairy acquisition. Investment news, stock ideas, and more, straight to your inbox. Learn about investing with our Investing Education hub. ASX-listed Bega Cheese is in the final stages of due diligence to acquire Kirin-owned Lion Dairy and Drinks. © 2009 - 2020 The Motley Fool Australia Pty Ltd. All rights reserved. An easy and convenient way to place your orders online Sign in. ASX:BGA. Picture: Kylie Else. On the ASX, Bega Cheese will buy Lion Dairy & Drinks for $534 million and substantially bolster its product range. You can do it. At the time of writing, the food company’s shares are up 10% to $5.57. Get Started Investing We value your feedback and appreciate your patience. Management’s base case is for synergies of $41 million per annum. Management expects the combined business to generate annual revenues in excess of $3 billion. James Mickleboro has been a Motley Fool contributor since late 2015. The company made a series of acquisitions over the years and officially became a company in 2008 and listed on the ASX in 2011. Please refer to our Financial Services Guide (FSG) for more information. Is Transurban (ASX:TCL) an ASX dividend share recovery idea. Find out how you can access what could be the NEXT Afterpay today! Our latest articles and strategies for the post-work life you want. The Complete Guide to Planning For Your Retirement, Setting up an SMSF: 10 Things You Need to Know Before Starting, 3 easy steps to building your ASX share portfolio for an early retirement, 4 tips on how to pick winning stocks for your retirement share portfolio, This is the best asset to own to start saving for your early retirement, Commonwealth Bank of Australia (ASX: CBA), Flight Centre Travel Group Ltd (ASX: FLT), Vanguard Australian Shares Index (ASX: VAS), BHP (ASX:BHP) share price on watch after Samarco update, Why the a2 Milk (ASX:A2M) share price will be on watch today, 2 of the best ASX healthcare shares to buy in 2021. His interest in investing first started in university while he was part of the Student Managed Fund. No gimmicks, just free stock research and more. 1800 000 570 customersalesandservice@lionco.com. In light of this, the deal is expected to be double digit earnings per share accretion in FY 2022. Bega Cheese has raised approximately $284 million at a 9.1% discount of $4.60 per new share. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. The Lion acquisition will complement Bega’s existing offering with the addition of other well-known dairy brands such as Dare, Vitasoy, Yoplait, Dairy Farmers, and more. The company made a series of acquisitions over the years and officially became a company in 2008 and listed on the ASX in 2011. For a limited time, The Motley Fool Australia is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50. 3 weeks Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition – Motley Fool Australia The Motley Fool . We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. I’ve looked past the valuation aspect for this one as I like the qualitative story of the company and this major acquisition. Australia This should result in cheaper raw materials, which bodes well for Bega’s bottom line. Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition Motley Fool Australia. View today’s LIO share price, options, bonds, hybrids and warrants. Hear our experts take on shares, the market & how to invest. Our top expert's free investment reports are exactly that -- completely free! The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169. This is partly due to drought conditions easing, however, it’s mostly the result of COVID-19 disruptions, which affected our export market by reducing consumer spending levels and lowering consumer confidence in many overseas economies. Is it time to jump on CBA (ASX:CBA) shares? 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