Struggling northern Tasmanian yoghurt producer Tamar Valley Dairy has been sold to New Zealand company Fonterra.
The company, which employs 170 people, went into voluntary administration in September with debts of about $10 million after a downturn in sales.
The New Zealand dairy giant will take control at the end of the month.
Tasmania’s Premier Lara Giddings welcomed the news.
“This makes sure that this iconic company continues into the future providing the high-quality product that the family who owned the business were known for,” she said.
In a statement the company said it would improve the operation and was committed to it continuing in Tasmania.
“We see tremendous opportunity in the Tamar Valley Dairy business, and we need to ensure we have the right skill set and expertise to build a sustainable, competitive business for the long term,” said Fonterra Australia’s Judith Swales.
“In coming to today’s agreement, all parties have worked closely together to move the business forward, while addressing two key considerations – that the business remains in Tasmania, which Fonterra is committed to, and that as many Tamar Valley Dairy employees as possible remain employed.”
The new owners say it will “determine the right roles and employees for these roles” over the next month.