King Island rescue

But the deal comes at a cost to Tasmanian taxpayers.

The new owners of King Island Dairy, Graeme Wilson and Nick Dobromilsky, say they will introduce softer and creamier cheeses while respecting the "artisanal traditions and rich heritage" of the business. King Island Dairy, owned by Canadian giant Saputo, had been on the market for over a year and facing threat of closure.

The Tasmanian government has supported the acquisition with more than AU$10 million in support over 10 years, including payroll tax and stamp duty relief.