The Freedom Foods (ASX: FNP) share price is down after holding its annual general meeting (AGM) and announcing an acquisition.
Freedom Foods is a food company that was started in 1986 with a focus on making nutritious and healthier food and beverages. It started with products in soy, rice milks and breakfast drinks. Some of its brands include Freedom, Milk Lab, Crafted Blends, Messy Monkeys, Australia’s Own, So Natural, and Goodness.
Freedom Foods’ Acquisition
This morning the company announced that Australian Fresh Milk Holdings (AFMH) has acquired the Torrumbarry Aggregation in Northern Victoria.
AFMH is a partnership owned by the Moxey and Perich families as well as other shareholders including Freedom Foods which as a 10% shareholding of AFMH.
AFMH currently operates two fully integrated dairy farming operations, being Moxey Farms in New South Wales and Coomboona Farms in Northern Victoria.
The Torrumbarry Aggregation is 3,500 hectares on the Murray River, which is 100km north of Shepparton and includes “significant” water waters.
The acquisition now makes AFMH the largest dairy producer in Australia with current operations forecasting over 190 million litres of production in 2021.
Freedom Foods intends to utilise more of the dairy milk output from AFMG for its milk supply needs for its UHT and other value added products.
The company contributed $4 million in equity funding as part of the deal.
AGM News
Management said that the company is well positioned to build into a major global food and beverage business with growth from Australia and Asia.
The company has finished its first stage of its ‘transformational Nutritionals capability’ and expects revenue and operating profit to increase as it finishes its current investment process.
Freedom Foods said that it has been producing and selling Lactoferrin since September 2019, adding to earnings diversification.
Its new “state of the art” facility in Shepparton is operational and the company is also installing solar panels across the entire site, making it the largest roof solar battery project in Victoria.
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