- TasFoods has purchased Tasmanian Dairy brand Betta Milk
- TasFoods will pay $3.5 million in cash and $8 million in shares at $0.12 each
- Purchase includes the brand name, a new processing facility and distribution centres.
TasFoods climbed four per cent in the Australian Securities Exchange today after purchasing dairy brand, Betta Milk.
Betta Milk’s processing assets and brand will be handed over as part of the deal, including a newly upgraded processing facility and distribution centres in Launceston and Hobart.
TasFoods will pay Betta $3.5 million in cash and $8 million worth of shares at $0.12 a piece. The company has signed an agreement with Wentworth Global Capital Partners to underwrite the shares.
TasFoods Executive Chairman Shane Noble says the deal will strengthen existing channels of revenue for a global presence.
“Betta Milk has excess production capacity presenting multiple avenues for growth within Tasmania, other states and export markets,” Shane said.
“TasFoods’ increased scale will allow us to grow our investment in premium Tasmanian food products and help us achieve our goal to become a more significant player in the Australian dairy market,” Shane said.
The company also recently registered the Van Diemen Land Dairy brand. TasFoods believes this will be a positive selling brand in mainland China.
The company also currently owns brands Pynegana Dairy, Meander Valley Dairy and Robur Farm.
Shane Noble stated they are on course for a positive financial year report to come. Company cash-on-hand was $6 million as of end of April this year.
Betta milk currently processes roughly 10 million litres of milk annually and has shares of 17 per cent of Tasmanian fresh milk sales and 37 per cent of branded milk sales. The company’s net revenue last year was $16.422 million.
TasFoods shares are trading at 13 cents each as of this morning.