Saputo Inc. has reached an agreement to acquire the specialty cheese business of Lion-Dairy & Drinks Pty Ltd. for A$280 million ($197.3 million).

Headquartered in Melbourne, Australia, Lion-Dairy & Drinks employs approximately 400 people at two manufacturing facilities located in Burnie and King Island, Tasmania. The specialty cheese business includes a wide portfolio of Australian brands, including South Cape, Tasmanian Heritage, Mersey Valley and King Island Dairy.

The specialty cheese business generated revenues of approximately A$192 million ($135.3 million) in the year ended Dec. 31, 2018.

“The specialty cheese business will enable Saputo’s Dairy Division (Australia) to further diversify its product offering, adding to and complementing its current activities,” Saputo said.

The announcement comes two months after Saputo reached an agreement to acquire Dairy Crest Group P.L.C. in a transaction valued at approximately $1.27 billion. Headquartered in the United Kingdom, Dairy Crest manufactures and markets cheese, butters, spreads and oils under British brands such as Cathedral City, Clover, Country Life and Frylight, as well as value-added dairy ingredients. Dairy Crest employs approximately 1,100 people in seven locations across the United Kingdom.

Saputo is one of the top 10 dairy processors in the world, the largest cheese manufacturer and the leading fluid milk and cream processor in Canada, the top dairy processor in Australia and the second largest in Argentina. In the United States, Saputo ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the largest branded manufacturer of cheese and a top manufacturer of dairy spreads.