The Food Revolution Group, a health drink maker, will sell its New Zealand business and its bioactive intellectual property to Singaporean natural ingredients producer Gravity Solutions Global. It will also lease its LangTech Citrus assets and part of its Mill Park, Victoria, plant to GSG.
The whole deal, which also will give Food Revolution access to ingredients made by GSG, is worth $17 million. Food Revolution chief executive Bill Nikolovski said the deal will enable the company to focus on commercialisation of its consumer products rather than research and development.
"This will significantly reduce our expenditure on further research and development of ingredients and technologies," Mr Nikolovski said on Monday 8 August.
Food Revolution was formerly LangTech, a developer of nutrient extraction technology for more than 20 years. It produces "functional" foods and beverages which are described as containing ingredients that provide a health benefit beyond basic nutrition. Its core products are its Juice Lab and Mixologist brands, and fruit-infused water under the Badu brand. Food Revolution has fruit and vegetable processing operations at Mill Park, and at Roxdale in New Zealand. GSG will pay $1.18 million for Food Revolution's New Zealand business Roxdale Foods, and $1.725 million for the bioactive intellectual property. It will lease the LangTech Citrus assets for $1 million per year for 10 years, and pay $200,000 per year for 10 years to use part of the Mill Park plant.
