Brownes Dairy is on the block, with the start of the process to sell the Australia-based dairy and coffee-drinks business.
McGrathNicol Restructuring was appointed receivers of the shares in Australian Zhiran Co. Pty Ltd, Brownes Dairy’s ultimate holding company, in April last year.
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According to a report in The West Australian, Australian Zhiran Co. defaulted on a A$200m (US$143.6m) loan provided by Chinese dairy giant Mengniu.
Brownes was sold – by Archer Capital, which bought it in 2011 – to Australia Zhiran Co. in 2017, a vehicle backed by a consortium that also had investment firm Changchun Lianxin Investment Consulting Company as a member. Mengniu was one of the key lenders in that acquisition.
In April last year, Hong Kong-listed Mengniu appointed McGrathNicol, which took control of Australian Zhiran Co.’s shares.
Brownes Dairy indicated in October a plan to embark on a sale in 2026.
In a statement issued this week, McGrathNicol said Mengniu has “consolidated its holding position and green-lit” the advisers to manage the sale process.
“Given the strong global appetite for resilient consumer assets, Brownes’ scale, capability and international presence make it an exceptionally attractive proposition for international and domestic players alike,” McGrathNicol partner Rob Kirman said.
Founded in 1886, Brownes Dairy calls itself Western Australia’s oldest dairy company. It sells a range of yogurt, cheese and coffee-based drinks through major grocers in Australia.
Among the products the business markets in Australia is RTD coffee brand is Hunt and Brew. The company launched Hunt and Brew in the UK in 2024 and, in October, announced the acquisition of local co-packer Indul.
Brownes Dairy CEO and MD Natalie Sarich-Dayton said the company is “a growing and resilient business” and added: “This process is a natural and positive step toward securing a long-term custodian capable of supporting our next phase of commercial and geographic expansion.”
She declined to comment on whether McGrathNicol was in live discussions with possible suitors. “Given the confidential nature of the process, it wouldn’t be appropriate for me to comment on individual parties or discussions,” Sarich-Dayton said.
“The timing will ultimately depend on the level of interest and how the process progresses. Naturally, we would like to see an efficient process and reach an outcome as soon as practicable.”
