Norton Rose Fulbright advises major retailer Coles on Saputo Dairy Australia acquisition

Global law firm Norton Rose Fulbright has advised Coles Group Limited on its agreement to purchase two automated milk processing facilities from Saputo Dairy Australia.

The deal allows Coles to improve security of milk supply, consolidate its milk production, and have capacity to facilitate growth through further product innovation. Coles said in an ASX announcement that it was attracted to the facilities because they are “state-of-the-art, delivering exceptional production efficiency and quality through highly automated processes”.

Each facility has the capacity to process around 225 million litres a year and they are predominantly used today to process Coles Own Brand 2L and 3L milk. The processing facilities are located in Laverton North (VIC) and Erskine Park (NSW) close to Coles’ distribution centres.

The Norton Rose Fulbright team advised on the corporate, property, employment and competition aspects of the transaction. 

The acquisition is subject to approval by the Australian Competition and Consumer Commission and other customary conditions. Coles said it is expected to be completed in the first half of the 2023-24 financial year.

Norton Rose Fulbright corporate M&A partner James Crowe commented:

“We are pleased to have assisted Coles in finalising its agreement to purchase these two modern Australian milk production facilities. This deal is a good example of the steps major retail businesses are taking to improve the resilience of their supply chains.”

The Norton Rose Fulbright team was led by James Crowe and supported by partners Nick McHugh, Adrian Jones, Melinda Bell, Chris Patten and Jeremy Wickens; special counsel Rohan Sridhar; senior associates Dietrich Marquardt, Jessica Kamleh and Jacinta Magazzu; associates Ellen Laughton, Natalia Starostenko, Shantanu Joshi and Xhanti Wong; and lawyer Jack Abrehart.