Italian dairy company Parmalat has acquired West Australian dairy producer Harvey Fresh for about $120 million.
Parmalat, who acquired the producer overnight, said the takeover strengthened the group's position in Australia and improves its ability to export to Asian markets.
Parmalat Australia CEO Craig Garvin said they acquired Harvey Fresh as it is a West Australian brand.
"We've got strong brands on the east coast and in South Australia but this acquisition gives us a national footprint, national manufacturing capability and access to excellent milk supply in this region," he said.
"We think there's a lot of growth in this business, particularly in the area of exports."
Mr Garvin said Parmalat's interest was in both Harvey Fresh fruit juice and dairy products.
Harvey Fresh director Kevin Sorgiovanni said the takeover will provide more export opportunities for Australian suppliers.
He said it would also create an opportunity to develop the flavoured milk and yoghurt market where the company does not currently have a strong brand presence.
Mr Garvin would not be drawn on whether farm gate prices would be increased for farmers.
"It's too early for us to speculate on that," he said.
"What we're committed to do is work with the farmers, work very closely, and then we'll assess that as we understand the business."
Mr Garvin said Harvey Fresh had a good track record of dealing with farmers.
"Relationship with the farmers is critical, you can't have a dairy business without good farmer relationships," he said.
"Two of the key family members are staying on with the business for the next couple of years and we'll work closely with them as they really understand this local market."
Harvey Fresh employs almost 300 people in WA and New South Wales.
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