While ACM has sold its interest in the company, it has negotiated a 10-year supply agreement and has plans for further development of the milk management business.
ACM managing director Michael Auld said Freedom Foods had approached the company and it had emerged that Freedom Foods had further plans, which he supported, but didn’t necessarily want to expend his company’s energies on.
Mr Auld said ACM was wanting to maintain a strict dairy focus.
As part of the deal where the ACM owners exit direct management input for Pactum, they will get a small stake in Freedom Foods.
Mr Auld said ACM would look at re-investing in the dairy industry, although he couldn’t yet say what projects this involved.
He said their 150 suppliers would not notice any changes.
Pactum operates an export UHT milk factory in Shepparton employing about 65 people.
ACM’s half-share partner, Freedom Foods, has bought-out ACM’s interest in the company, as part of an equity raising and expansion program.
Freedom Foods wants to expand the Shepparton operation onto neighbouring land for larger warehousing facilities.
It also plans to expand factory capacity and develop further high-value dairy products including cream and drinking yoghurt for export.
Pactum was established in 2014 as a joint venture between the health food manufacturer, Freedom Foods, and the milk supply company, ACM.
Freedom Foods plans to use the money raised in the share offer to buy an undisclosed sport and nutrition company, as well as a North American cereal and snacks company.
Freedom Foods signed a memorandum of understanding with Shenzhen JiaLiLe Food Co to establish a new company called Australia’s Own Dairy Company China with the goal of seeking a listing on an international stock exchange.
AO China will provide a stronger strategic link between the existing operations in China and production in Australia.
Freedom’s retail share offer closed on Friday.
Source: RiverineHerald
Link: http://www.riverineherald.com.au/rural/2016/12/28/67474/acm-sells-its-pactum-stake
