22 Mar Liquidated milk processing plant Dairy Day goes to auction
One of South Africa’s largest dairy producing plants, Dairy Day, recently went into liquidation. It will now be taken to auction. The sale will be via a sealed bid closing on 29 March 2018 at 12h00. It will comprise of various entities namely Chantilly Trading, Honey Dew and Dairy Day,
Dairy Day on auction
The site boasts a superb position located on a main arterial road just outside Pietermaritzburg. It is in close proximity to the renowned Midmar Dam. In 2015 the company acquired Stonelees Dairies and Honeydew Dairies. This made it one of the largest dairy producers in Southern Africa and held offtake contracts with likes of Spar and Checkers.
The sale of Dairy Day is comprised of Chantilly Trading, Honey Dew and Dairy Day. The former two in provisional liquidation and the latter awarded by Court Order to Standard Bank, the major creditor.
The sale includes the land (one title deed), the entire production facility of powder, milk, maas, yoghurt, butter and cream as well as plant and all buildings which includes storage, cold rooms, distribution and boiler room.
Clear Asset to conduct the auction
The sealed bid process will be conducted by leading auctioneering house Clear Asset. They are the same auctioneering house who last year took legacy player Dairy Belle to auction. The auction achieved over R66 million. Comments Ariella Kuper, MD of Clear Asset, ‘’Both liquidations stem more from mismanagement than a reflection of the dairy market.’’
The sale will potentially also include an option to purchase the Dairy Day brand. Adds Kuper, ‘’We have selected this method of sale as we are selling an entire concern i.e. land, buildings, plant, equipment and even the possibility of the brand itself. Hence this manner of sale via sealed bid is to accommodate both local and international participants who may need to include conditions in their offers. As such a sealed bid is less one dimensional than a public auction bid in this instance”.
The positioning of Dairy Day has generated much interest from both local and international buyers. ‘’The plant is located in Pietermaritzburg adjacent to another major player, Fairfields, who exclusively supplies food giant Woolworths. It runs along a main access road (N3) to the Durban port and major cities including Johannesburg. This allows the buyer excellent access for distribution.’’
Full information is available on the website www.clearasset.co.za (web ref 7871) with continual updates being made to facilitate due diligence with bidders. For example, key information on the effluent system has just been included, as well as capacity and power on the site, title deed information is there and a copy of the sealed bid document should be loaded within a few days.