Freedom Foods will be purchasing the well-known muesli producer Popina Foods for AUD$35 million.
Australian Food News reported that Popina Food is presently vending Arnold's Farm muesli and the range of Goodness Superfoods breakfast cereals, muesli bars, porridge which all include CSIRO-developed health functional food ingredient "BARLEYmax" wholegrains.
The "BARLEYmax" ingredient was developed as a valuable innovation using barley to create a high fiber content cereal product especially in levels of soluble fiber. This is to aid health issues such as digestion, weight, diabetes and cholesterol management.
CEO Arnold May first established Popina Foods in Melbourne in year 1983. The company website indicated that it is the largest contract munfacturer of muesli-based cereals and snack bars in Australia.
"Having previously worked in a packaging manufacturing business, the business operated out of a shop front in an inner Melbourne suburb. Initially, the manufacturing process was kept very basic, a small oven and cement mixer being used to toast and blend all muesli products while all raw materials and finished goods were moved in and out of the shop by hand. The customer base was very small, consisting of a few health food stores in and around Sydney," the description read. "Today, 30+ years since its creation, Popina Foods is the largest contract manufacturer of muesli based cereals and snack bars in Australia. Its' main customer base includes all major supermarkets in Australia and New Zealand, Australian Brand Owners as well as export customers including Singapore, China, Japan, the Middle East and the UK."
"The company is still based in Melbourne, Australia and its' modern factory covers 10,500 square metres (which will be extended by a further 5,000 shortly) and has approximately 100 staff. The breadth of its customer base, innovation, flexibility and quality in the services it provides has contributed to rapid growth of between 15-20% per annum - which is expected to continue," the company wrote. "The company remains truly a family affair with Arnolds's son Jonathan joining the business in 2009."
Meanwhile, Freedom Foods announced a AUD$65 million equity raising to list on the Autralian Securities Exchange (ASX). The funds will be used to purchase Popina Foods. Moreover, it will be done to fuel the company's growth plan which includes developing a new UHT milk processing facility at Ingleburn.
