Keytone Dairy is a manufacturer of formulated dairy products based in Sydney, Australia and Christchurch, New Zealand.
Keytone Dairy has secured a deal to acquire Australian UHT drinks manufacturer Omniblend for AUD 22.6 million ($15.5 million) as it targets growth in China.
Founded in 2008, Omniblend is a contract manufacturer of formulated powder products, specialising in the health and wellness sector. The firm employs 84 people operating across four sites in Melbourne, Victoria.
In addition to its third-party manufacturing business, Omniblend creates formulations for its clients as well as for its own proprietary products.
Keytone Dairy – a manufacturer of formulated dairy products based in Sydney, Australia and Christchurch, New Zealand – said the acquisition provides it with immediate exposure to the growing health and wellness industry.
The company added that its revenue base will be diversified through an expanded range of value-added products and services (brands, whey protein, sports nutrition, nutraceuticals and ready-to-drink long life UHT products).
James Gong, Keytone CEO, said: “I am thrilled with the acquisition of Omniblend and the opportunities it brings to Keytone. It offers a significant and complementary infrastructure platform for growth whilst enhancing the ability of the collective business to maximise the offering to our customers, being proprietary brand customers as well as our private label clients.”
“Keytone will not only be able to leverage its clean, green, pristine, New Zealand provenance and credentials, but also the highly complementary and robust Australian food safety standard conditions. These credentials are invaluable as we continue to penetrate our core markets, in particular China.”
“The health and wellness sector is particularly attractive and offers a large number of cross-selling opportunities through Keytone’s existing distribution platforms.”
Keytone chairman Peter James added: “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.”
Post-transaction, Danny Rotman and Arie Nudel, founders of Omniblend, will join the board of Keytone, subject to shareholder approval.
© FoodBev Media Ltd 2019