- New Zealand Coastal Seafoods (NZS) has agreed to acquire Kiwi Dreams International (KDI) from its shareholders
- KDI develops innovative nutraceutical products and services for the multi-billion dollar nutraceutical industry
- The deal will give the company access to this valuable sector as well as KDI’s established suppliers, clients and intellectual property
- KDI Managing Director, Tony Dowd will work with the company over 12 months to help develop high-value products
- Company shares remain flat and are trading at 1 cent each
New Zealand Coastal Seafoods (NZS) has agreed to acquire Kiwi Dreams International (KDI) from its shareholders.
The consideration for the acquisition is 16 million ordinary fully paid shares in New Zealand Coastal Seafoods.
Kiwi Dreams International, or KDI Ingredients, develops innovative nutraceutical products and services including ingredient supply, quality, as well as formulation and development.
KDI was formed in December 2018 through the merger of two New Zealand companies founded by two of its main current shareholder, Tony Dowd and Grant Washington Smith. Additionally, NZS is acquiring KDI from Mr Rinku Singh.
The acquisition will give NZS access to the valuable nutraceutical and pharmaceutical ingredient sector as well as the benefits of KDI’s key suppliers, clients and intellectual property.
“NZCS has recently recognised significant opportunities in the nutraceutical market, which it wishes to capitalise on,” Company Interim CEO Andrew Peti said.
“Through KDI Ingredients’ key suppliers and intellectual property, coupled with a well-defined product development schedule, NZCS aims to expand into the high growth global nutraceutical market,” Andrew added.
In 2018, the global nutraceutical market was estimated to be US$230.9 billion (approx. A$352.5 billion).
Under the terms of the acquisition, KDI Managing Director, Tony Dowd, will be contracted to NZS for at least one day a week over 12 months. The purpose of this is to develop potential high-value products such as Mussel Powder and Oils, Marine Based Collagens, Seaweed Extracts and Oyster Powder.
This deal is in line with the company’s strategy to expand its product line as well as revenue streams.
Company shares remain flat and are trading at 1 cent each at 2:54 pm AEDT.