Australian dairy group Murray Goulburn has taken over the Caboolture cheese brand and some processing equipment from United Dairy Power (UDP) which fell into administration last year.

Though the amount was not disclosed by the companies, industry sources peg the deal at about $10m.

Talking about the deal Murray Goulburn managing director Gary Helou said: "The strategic integration of the Caboolture brand into our growing food service business will strengthen MG’s position in this segment.

"The acquisition of the Caboolture brand forms part of our strategy to diversify our portfolio to higher value dairy foods, with the goal of providing sustainably higher farmgate prices to MG suppliers. "

Caboolture is a major shredded mozzarella brand, mainly used in pizza restaurants.

Murray Goulburn will relocate the cheese cut-and-shred equipment from UDP’s factories in South Australia to its site at Cobram, Victoria.

UDP fell into administration last year after Hong Kong businessman William Hui, who had acquired UDP earlier, failed to put extra capital into the business, reports The Land.

As cited in The Land, Fairfax Media earlier reported in February of ongoing talks between Murray Goulburn and UDP receiver PPB Advisory; but apparently MG was not too keen on buying the whole business.

Meanwhile, jobs of about 80 factory workers at Murray Bridge and Jervois, along with 20 other UDP staff in Melbourne and Adelaide, are at risk with the new deal.