Italian dairy firm Parmalat’s subsidiary, Parmalat Australia, has agreed to buy Longwarry Food Park for $67m.

The companies signed an agreement to this effect.

Longwarry Food Park operates in the state of Victoria. It specializes in the production of milk powders, cream cheese, plus fresh and UHT milk products.

It currently operates a production facility in Longwarry and employs approximately 50 people.

The acquisition will enable Parmalat to strengthen its position in the Australian market and widen its manufacturing base.

Following this deal, Parmalat can enter the milk powder market as well as supports its overall milk supply base.

The acquisition is subject to certain conditions including approval by Foreign Investment Review Board.

This purchase is expected to improve Parmalat Australia’s export capability.

Parmalat manufactures and distributes milk, dairy products, and fruit beverages. It operates in three segments: milk, dairy products, and fruit beverages.

The Italian firm has operations in Europe, North America, Latin America, Africa, and Australia.