SYDNEY: Keytone Dairy Corporation Limited has entered into a binding conditional agreement to acquire 100% of the shares in Omniblend Pty Ltd for $22.6 million plus an earn-out.
The transformational acquisition will make Keytone a leading player in the health, wellness and nutraceutical sector.
Keytone is a leading New Zealand-based manufacturer and exporter of formulated dairy and nutrition powdered products. Omniblend is a leading Australian-based product developer and contract manufacturer of high value, formulated, blended powder products and long-life UHT drinks, specialising in the health and wellness sector.
Upon signing the acquisition agreement with the Omniblend parties, Keytone’s Chairman, Peter James, commented, “This is a compelling and transformational acquisition for Keytone. Omniblend is a leading Australian manufacturer in the health and wellness sector, with both dry powder and ready to drink dairy based product capability. Keytone is fast tracking its development and the acquisition is underpinned by a strong strategic rationale and articulated upon our four-pillar growth strategy. Importantly, the acquisition is highly EPS (earnings per share) accretive for Keytone’s existing shareholders.”
“The acquisition offers scale and diversification to Keytone’s existing business, with a depth of product offering and manufacturing expertise and capability. The Omniblend customer base includes a range of highly credible Australian and foreign contract manufacturing clients and the combined company will be substantially diversified, both in terms of its product mix, and in terms of its geographic markets and customer base.”
“Further, the Acquisition provides Keytone with an early mover advantage in the health and wellness sector into China. We believe that the combination of Keytone’s existing Asia and China sales channels, export-oriented brand and capital reserves, with Omniblend’s scale, breadth of product range, highly automated manufacturing facilities and proven customer relationships will produce substantial cross-sell synergies. The Acquisition is also expected to produce significant cost efficiencies and operating leverage commencing in the 31March2020 financial year.”