Hong Kong-based businessman William Hui has acquired United Dairy Power (UDP), Australia’s largest privately owned dairy processor for approximately $70 million. Directly on the heels of Saputo’s $530 million takeover of Warrnambool Cheese & Butter Mr. Hui, who is chairman and majority owner of Swing Media Technology, is buying within the Australian dairy industry in answer to Asia’s high demand for high quality dairy products. UDP processes 500 million liters of milk per year in South Australia and Victoria with annual sales in excess of $200 million and profits of more than $15 million. UDP was founded in 1999 by Tony Esposito and was originally a broker of milk; becoming a major processor after the purchase of Lion’s Murray Bridge and Jervois Dairy factories in Southern Australia. More movement in the Australian dairy sector is expected as Tasmania’s Van Dieman’s Land Dairy is still looking for a buyer and international buyers are showing interest in both Raliegh and Lactanz Dairies, both with values of approximately $20 million.
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