On 17 June 2019, Keytone Dairy announced the signing of binding agreements for the 100% acquisition of Omniblend. Omniblend is a profitable and leading Australian-based product developer and contract manufacturer of high value, formulated, blended powder products and long-life UHT drinks, specialising in the health and wellness sector.
Omniblend operates across four sites in Melbourne, Victoria. In addition to its current third-party manufacturing business, Omniblend creates formulations for its clients as well as for its own proprietary products. Omniblend holds numerous accreditations including CNCA, Dairy Food Safety Victoria, Australian Certified Organic, British Retail Consortium (AA Grade) and Halal certified. Omniblend has been profitable since inception and it is expected to realise revenues of $29.7 million and EBITDA of $2.244 million for FY2019.
The Board believe that the acquisition provides Keytone with diversification and scale and is in line with its stated four-pillar growth strategy, with strong strategic and financial rationale including:
- Entering a logical adjacency in the health and wellness sector
- Omniblend has established infrastructure, highly automated with substantial capacity to facilitate future growth
- Diversifies Keytone’s revenue base through expanded range of value-added products and services
- Financially compelling and highly EPS accretive (pre-synergies)
- Vertical Integration for Keytone to expand proprietary brands and pursue product acquisition opportunities
The acquisition is expected to complete at the end of July, subject to shareholder approval.