Australia’s Keytone Dairy has announced the execution of a binding agreement to acquire the assets, brands and business of 40Forty Foods, which is currently trading as Super Cubes.
Keytone Dairy will acquire Super Cubes for a consideration of A$726,000 ($493,323) plus an earn-out subject to performance milestones.
Keytone Dairy chairman Peter James said: “The acquisition of Super Cubes demonstrates swift and clear execution of the branded product growth strategy following the acquisition of Omniblend.
“Super Cubes is a growing brand in the health and wellness sector with impeccable health credentials and a growing distribution footprint.
“It is well-positioned for rapid growth domestically and internationally, given its first-class product portfolio, existing penetration in distribution channels and senior executive talent.”
Established in 2018, Super Cubes is an Australian consumer lifestyle health and wellness brand that offers frozen cubes of fruits and vegetables, as well as plant-based protein and ingredients.
Its new product development pipeline will be rolled out in October and includes Super Tubes Icy Poles and Super Cubes Wholefoods Bars and Super Cubes smoothies.
Super Cubes products are currently distributed to Woolworths in Australia as well as 400 independent supermarkets.
Keytone intends to fund the acquisition through its existing cash reserves, as well as with the issuance of equity with no capital raise required.
Upon completion, Keytone will pay 40Forty Foods a consideration of A$120,000 ($81,546) in cash and assume debt repayment of A$463,000 ($314,599).
Keytone has agreed to pay A$143,000 ($97,154) to 40Forty Foods as deferred cash consideration over two years.
In addition, Keytone will issue shares under an earnout after Super Cubes achieves certain strategic and financial milestones.
Keytone Dairy CEO Danny Rotman said: “Super Cubes is an exceptionally attractive acquisition for Keytone.
“The brand is a fast-growing, highly appealing range of products for the health-conscious, time-poor, consumer.”
