Nestlé Australia Limited Acquires Uncle Tobys

Nestlé Australia has agreed to acquire the Uncle Tobys business in Australia, as well as the rights to the brand in New Zealand, from Burns Philp for $890 million. Subject to regulatory requirements, the acquisition will be formally completed within a few weeks.

Nestlé Oceania CEO, Jorge Sadurni, said the acquisition confirms Nestlé’s commitment to nutrition, health and wellness and represents a key strategic step in the Company’s evolution to a leading food and beverage, nutrition, health and wellness company.

Uncle Tobys brands include Vita Brits, Uncle Tobys Oats, Uncle Tobys Muesli Bars, Rollups and Le Snak, and Country Cup soups. The company had sales of approximately $400 million in 2005 and an EBITDA of approximately $79 million. Under the agreement Nestlé will acquire the Uncle Tobys factory at Wahgunyah, in northern regional Victoria and other operations.

Cereal Partners Worldwide (CPW), the successful joint-venture between Nestlé and General Mills and the global number two in cereals, will acquire the Uncle Tobys cereals business. CPW entered the Australian cereal category in 2003, and already enjoys considerable success with its Milo, Cheerios, and Nesquik branded cereal products. This acquisition makes it the number two player in the market, one of the largest in the world. It also provides a manufacturing facility for CPW in Australia.

“The acquisition adds another iconic brand to the Nestlé stable, which includes Nescafé, Milo, Kit Kat and Peters Ice Cream, amongst many others,” Mr Sadurni said. “It also strengthens our participation in the breakfast cereals, nutritional snacks and soups categories.

“Nestlé has a proud tradition and a long-standing presence in Australia and New Zealand, and this acquisition underscores our commitment here. Indeed, we celebrated our 120th Anniversary in New Zealand last year and we are looking forward to celebrating our Australian centenary in 2008,” Mr Sadurni said.

For further information please contact:
Peter Kelly
Director, Corporate and External Relations
Nestlé Australia Limited
Tel: (02) 8756 2462 Mob: 0418 225 559

Site