Forbidden Foods has announced it will acquire Good Oats Pty Ltd, trading as Oat Milk Goodness (OMG), in a deal worth $3.42 million.
The company executed a Share Purchase Agreement (SPA) to acquire 100 per cent of OMG for a consideration of $3.42 million via the issue of 285 million ordinary shares priced at 1.2c per share.
Alex Aleksic, CEO of Forbidden Foods, said this transaction marks the Company’s maiden step in transitioning to a brand manager in the ‘better for you’ segment of the FMCG sector to further capitalise on the consumer shift towards healthy choices.
“The proposed transaction represents a unique opportunity to leverage the respective strengths of both companies and create an integrated multi-channel, health-focused products business serving domestic and international markets.
“Strategically, the Forbidden Foods Board and management team holds the view that OMG’s product suite specifically complements Forbidden Foods’ core range of Blue Dinosaur healthy snack foods, by adding a leading health-drink range in a fast-growing market.”
Co-founded by Australian cricketer Steve Smith, OMG competes in the fast-growing oat milk sector with a unique product offering defined by its seed oil-free formula and is currently delivering annualised revenue of $1.2 million.
Smith said they are excited to have entered this SPA with Forbidden Foods and are confident that it will provide a springboard for OMG’s future growth.
“While there are a number of synergies between the businesses, OMG has the potential to benefit from the agreement through access to capital markets and international expansion opportunities. I would like to take this opportunity to thank all shareholders, as well as key management for their support as we progress the business’ next phase of growth.”
The acquisition will allow Forbidden Foods to considerably increase its revenue profile, Australian distribution network and international expansion opportunities, as well as streamline operating costs associated with both companies.
Along with its established distribution with major Australian retailers, OMG will target international expansion opportunities into large markets, including India.
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