He added that the deal would also see iconic local brands find their way back to an Australian company.
"It's great to be the company that's acquiring brands that were previously owned by international companies ... and bringing them into Australian hands. I think that's long overdue and needed to happen,"Mr Irvin toldThe Age andThe Sydney MorningHerald.
The $1.1 billion ASX-listed company,which still counts the small town of Bega on the NSW lower south coast as its corporate headquarters,will become a food and dairy heavyweight after beating a field that earlier included alternate asset manager Tanarra Capital and international dairy giant Saputo.
The deal adds a wide array of fresh dairy products such as yoghurt and flavoured milk to Bega's existing portfolio of dairy products like cheese and butter,and its big selling grocery items peanut butter and Vegemite. By having more well-known brands and shelf space in supermarkets,the bigger Bega could also now be on a better footing when dealing with supermarkets.
Morgans analyst Belinda Moore said the deal was in line with Bega's strategy of lifting its branded product sales and could give the company more clout with supermarkets.
"You could argue this further cements their relationship with the major supermarkets because the fact is they're going to have a lot more products in store,"she said.
Bega's success would not have been possible if not for the federal government's move to reject on national security grounds a $600 million deal between Lion and China Mengniu Dairy for the Lion business,which had been signed last year.