Dairy Innovation Australia Limited (DIAL) has announced the sale of DIAL culture production unit and strain collection to Danish biotechnology company Chr. Hansen A/S and its Australian subsidiary.

The sale of the unit is in line with the strategic review conducted by the DIAL board. The sale transaction is likely to be completed by November 2015.

Chr. Hansen specializes in fermentation technology with culture production facilities in Denmark, France and the US. This acquisition helps the company to set up its culture production facility in Australia.

Chr. Hansen's Australian subsidiary was established in 1951 and has a long association of serving the Australian dairy industry. Based in Melbourne, Chr. Hansen is equipped with laboratory applications, marketing and supply chains that serve the dairy, food, beverage and pharmaceutical industries in Australia and New Zealand.

DIAL chairman Peter Boyden said: "Securing a key international purchaser in Chr.Hansen validates our decision to separate the Cultures Production Unit from the remaining consultancy functions of DIAL. It is important to the DIAL Board to know the supply of cultures to the Australian industry will be serviced by a global leader in the sector."

Several of the DIAL staff is expected to join Chr. Hansen. The company will continue to produce for key clients at the existing DIAL facility for 12 months. The company, however, is yet to round off on long term future location.