King Island Dairy was slated to close in mid-2025 after owner Saputo said in September it had been unable to find someone to purchase the business.
Saputo announced on Friday it had entered into a binding agreement with a new owner.
It is understood the buyer will be a new entity named King Island Dairy 2, headed by two experienced Australian businessmen.
Gerard Lourey, Saputo Australia's director of operations, said the buyer would acquire the dairy facility, the brand, the on-site cheese store and two farms to provide a guaranteed milk supply.
"We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian government," Mr Lourey said.
King Island Dairy operations began in the early 1900s. It is one of the biggest employers on the tiny outpost, which is home to about 1600 people.
Mr Lourey said the buyer, which is expected to make an announcement in coming days, was committed to preserving operations and jobs on the island.
Workers will receive an offer to transfer their employment to the new owner, with the sale transaction expected to be completed by mid-2025.
Saputo, which bought King Island Dairy in 2019, previously said 58 employees would be impacted by the closure of the business.
Tasmania's Premier Jeremy Rockliff had previously pledged to help find a buyer for the business.
"Not only will King Island Dairy remain open and employing locals ... for years to come - the dairy and brand will be coming back into Australian hands," he wrote on social media.
"A big win-win for all of us."
King Island has a unique climate based on its location and provides lush grazing for cows and unusually sweet milk.
22°C