The acquisition, which amounts to a total of AUD 890mn (€524mn) and which is due to be completed by the middle of the year, also includes the rights to the brand in New Zealand.
According to the Swiss firm, "the move underscores Nestlé's strategic focus on nutrition, health and wellness, and significantly improves its market positions in these three categories in Australia."
Sales for Uncle Tobys, which was founded in 1893, last year totaled around USD 400 (€235) in breakfast cereals, nutritious snacks and instant soups.
The company's breakfast cereal sector currently accounts for more than 40 per cent of overall sales, and will be acquired under the deal by Cereal Partners Worldwide (CPW), a joint venture between Nestlé and cereal giant General Mills.
CPW, which entered the Australian market in 2003 with the Milo, Cheerios and Nesquik brands, claims the latest acquisition makes it the number two player in the market, and one of the largest in the world. It also provides a manufacturing facility for CPW in Australia.
Nestlé also claims the move brings its Australian division the number one position in nutritious snacks, under the Uncle Tobys brand, and the number two position in instant soups, under the Country Cup brand.
"Both categories are strategically important in the Group's drive towards nutrition, health and wellness," the firm announced yesterday.
"The combination of the Uncle Tobys and Nestlé businesses provides a strong opportunity for synergies, both in terms of cost, but also through growing the Uncle Tobys brands in channels where Nestlé has particular strength, including impulse," it added.
Nestlé Australia had total sales of over USD 2bn (€1.2bn) in 2005 and is due to celebrate its 100-year presence on the Australian continent in 2008.