CopRice has finalised the purchases of Gippsland's Riverbank Stockfeeds' dairy and beef business.
CopRice makes stockfeed for dairy, equine, pet, cattle and sheep at Coleambally, Leeton, Cobden in south-west Victoria and Tongala in northern Victoria.
The purchase of Riverbank Stockfeeds' dairy and beef business will mean CopRice expands its geographic reach to cover all major diary production areas in Victoria.
CopRice general manager Peter McKinney said the Victorian dairy production market was a significant export driver for Australia.
This deal is expected to see the investment in the Coleambally manufacturing site take on more importance as the newly acquired Leongatha plant is closed for upgrades before returning to production next year.
"We will now make a significant investment to improve the quality and standard of the site, but in the interim we will utilise our extensive manufacturing capability in Cobden, Tongala and Coleambally to maintain supply of high-quality products to Riverbank customers," Mr McKinney said.
"For less than $10 million in acquisition costs, working capital requirements and capital expenditure on these upgrades, CopRice has acquired a fantastic asset and associated customer base in the heart of Gippsland - one of Australia's premier dairy regions.
"With this acquisition, CopRice has further cemented our reputation as one of the leading providers of stockfeed and companion animal products in Australia, with an extensive operational footprint and customer base that now extends across NSW and Victoria."
Mr McKinney said as CopRice grows its presence in the diary market, complimentary growth in pet and equine food is also expected.