Mead Johnson Nutrition (MJN), a global company that manufactures and distributes pediatric nutrition products, has entered into an agreement with Bega Cheese, an Australian dairy company, to acquire its spray drying and finishing capabilities.

Both companies have not disclosed the financial details of the deal, which is expected to close in the second quarter of this year.

Mead Johnson Nutrition president and chief executive officer Kasper Jakobsen said: “We believe that supply chain flexibility is important in the pediatric nutrition category.

“This acquisition further strengthens our ability to protect and expand our growth in China by creating both additional capacity and the ability to adapt to a changing regulatory environment.

“In our drive to become even more consumer-centric, this move also enables us to better respond to evolving consumer preferences and to compete effectively in additional market segments in China.”

Since 2009, the Bega has been supplying its certified ingredients for MJN products.

Mead Johnson Nutrition Global Operations senior vice-president Jeff Jobe said: “Bega is known the world over for its pure, high-quality dairy sourcing and its environmentally responsible operations.

“These outstanding facilities, with which we are very familiar, are a perfect fit for our global supply chain network, which is built on our uncompromising commitment to scientific rigor and product quality.”

With its production facilities spread across Victorian state in Australia, Bega Cheese has been playing a significant role in the Australian and international dairy industry.