M&A Partners Provides Opportunity to Acquire One Of Australia’s Largest Contract Manufacturers

Wednesday, 30th March 2022

Opportunity to acquire one of Australia’s largest specialised contract manufacturers of health, wellness and better-for-you snack products with a long term customer base and consistently growing revenue and profitability

Founded in 1978, the business is a premium Australian snack food (health bars and chocolate) contract manufacturer based in Melbourne.

The business operates from a production facility that has the capacity to produce 3,900 mt p.a. of chocolate and specialty health bars using modern equipment. The chocolate products comprise bars (solid, coated and enrobed) and advanced health food bar lines.

All revenue generated is from contract work for some of Australia’s leading healthy snack brands. The business does a small amount of bulk / foodservice manufacturing. The business does not manufacture any products under its own brands or retailer ‘home brand’ products. This is a key factor underpinning the Company’s attractive margins.

The production facility is experiencing strong demand from its existing customers seeking new and innovative health food and better-for you products for launch into the Australian supermarkets and export markets.

A new Chocolate bar line (total cost $2.6m) has been acquired from Europe and is due to be installed in July 22 which will double capacity and significantly improve employee efficiency.

The business is budgeted to generate $24m of revenue p.a. in FY23 of which 90% is from the manufacture of products for the retail market. The business has grown its EBITDA from FY20 $1.1m to FY22B $3.1m. The forecast FY23 EBITDA of $4.5m, is driven by the investment in a new chocolate line and continued strong product demand from its customers across the health & wellness category.

The Company’s founders have indicated an interest in either seeking a strategic capital partner to fund future growth or to achieve a partial or full exit. The key management are prepared to continue in the business for an agreed period.

An Information Memorandum is available upon execution of an NDA. Expressions of Interest are due 28 April 2022.

Please reach out to Antony Lynch (0419 919 722) or Andrew Balfe (0415 791 177) if you have any questions regarding the opportunity or transaction process.

For more information click here.