Bega Cheese Limited (ASX: BGA) is continuing with its expansion through acquisitions and is close to completing its purchase of the Peanut Company of Australia Limited.
Bega Cheese CEO Paul van Heerwaarden said his company was pleased with the response to Bega Cheese's offer by the Peanut Company's shareholders.
"We expect to have 90 per cent of the issued shares accepting the offer by the closing date of 20 December 2017," Mr van Heerwaarden said.
The latest announcement follows a series Bega Cheese acquisitions and rumours of such.
It was rumoured that Bega Cheese, along with the A2 Milk Company Ltd (ASX: A2M), was looking to take over dairy company Devondale Murray Goulburn, part of the MG Unit Trust (ASX: MGC).
Bega Cheese shot down speculation of such a takeover in October, stating it was "no longer a potential purchaser of Murray Goulburn and has no current plans to raise capital".
But the dairy company did indicate that it was looking for opportunities to expand through acquisitions, stating that Bega Cheese had a "strong balance sheet and believes there are a number of potential opportunities in dairy and food".
The latest steps towards the acquisition of the Peanut Company would likely compliment a previous acquisition.
In July, Bega Cheese completed its acquisition of Mondelez International's Australia and New Zealand grocery and cheese business which came with the Vegemite brand and what has now become a controversial peanut butter product linked to Kraft Food Inc.
Bega Cheese is engaged in a legal dispute with Kraft over the use of the peanut butter product, but that hasn't stopped the cheese company shoring up supply for the popular spread.
Mr van Heerwaarden said the peanuts from the Peanut Company will be put to good use.
"We plan to grow the supply of high quality Australian peanuts for our great tasting peanut butter that has been made for over 50 years at our Port Melbourne facility."
Bega Cheese shares have gained more than 60 per cent in the past year and are trading for about $7.44.
