The Arnott’s Group has signalled a plan to expand its Australian food business with the purchase of Melbourne snack and breakfast cereal manufacturer Diver Foods.
Diver, the manufacturer of Carman’s muesli and muesli bars, will form the basis of a new a new business division at Arnott’s to be known as Good Food Partners.
While the Group’s portfolio is famous for its iconic biscuits, the acquisition is part of an ambitious growth strategy that involves entering new products categories.
The acquisition complements The Arnott’s Group’s purchase of the cereal and snacks operations of Freedom Foods, which was agreed in December and is expected to complete in March.
Arnott’s Group CEO George Zoghbi said: “Diver Foods presents a fantastic strategic growth opportunity for us, with products and capability that will complement our existing brands while helping to diversify our iconic product portfolio and drive our entry into new categories.
“Our intention is to create a new cereal and snacks division that will bring the Diver Foods and Freedom Foods businesses together when the transactions are complete.”
Under the agreement, The Arnott’s Group will acquire 75 per cent of Diver Foods. T
Chris Diver, the owner and Managing Director, will continue to own the remaining 25 per cent.
Chris Diver said Diver Foods had over 18 years successfully partnered with an array of leading brands and retailers to become one of Australia’s largest cereal and snacking manufacturers.
“We see huge potential for the future and are excited at the prospect of joining with a business like The Arnott’s Group that has similar values and strong Australian heritage.
“Together, we will remain focused on quality, local ingredients, investing in sustainable supply chains and partnering with the communities in which we operate.”
Arnott’s is working closely with Diver on how best to integrate their operations into its business.
Picture: Diver Foods/muesli bar production
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