TasFoods Limited (ASX:TFL), an Australian company focused on the food sector, encompassing dairy and poultry, has announced its strategic decision to sell its Pyengana Dairy business. The company believes that new ownership is the most suitable path for Pyengana Dairy to continue its growth as a premium artisan cheese producer, particularly known for its Traditional Cloth Bound cheddar cheese.
TasFoods acquired Pyengana Dairy in 2017. The company said the divestment decision followed a recent business unit review, which concluded that the current TasFoods structure is not the appropriate vehicle to further develop and scale up the Pyengana Dairy brand. The net proceeds from the sale are intended to strengthen TasFoods’ poultry supply chain network. Pyengana Dairy, located in Tasmania, has been producing artisan cheese for over 130 years, sourcing milk from a single herd dairy farm adjacent to its production facility and farmhouse café.
TasFoods is commencing a marketing campaign to facilitate the sale of Pyengana Dairy. The company has also entered into a non-binding Term Sheet – Option Agreement with significant shareholder MSC ATF AgFood Opportunities Fund (“AgFood”). The agreement grants TasFoods the option to sell Pyengana Dairy to AgFood & Associates for $2 million plus inventory at settlement. TasFoods may exercise this option until mid-September 2025, with full settlement expected on or before 31 October 2025, subject to shareholder approval in mid-October.
Under the terms of the agreement, TasFoods will manage Pyengana Dairy under a paid Service Agreement with AgFood to ensure the business continues to meet its targets and assist with its growth strategy. TasFoods will continue to explore and review all possible strategic initiatives including partnerships, increased vertical integration and complementary asset utilisation options.
