Omniblend signs agreement to acquire AusConfec assets

Keytone subsidiary Omniblend has signed an agreement to acquire the assets of AusConfec at a 35% discount to the fair market value in continued use and a 25% discount to the net asset value.

The $2.25m acquisition completes Keytone’s fully diversified manufacturing operation across powders, ready to drink protein drinks and now protein bars. It also offers a significant upside for product development in the company’s existing product range.

Under the binding conditional agreement, Omniblend will acquire AusConfec’s assets including German equipment for the manufacture of protein bars in an operational facility.

With the acquisition, Keytone will be able to bring its proprietary brand, SuperCubes’ Wholefoods Bars in house with immediate effect.

Furthermore, the expansion of the acquired assets will take advantage of the $800,000 Manufacturing Modernisation Fund grant awarded by the Australian Government to Omniblend.

Keytone will also get significant growth opportunities to cross-sell to existing clients that currently produce bars and new product development opportunities for clients who are yet to produce bars.

The acquisition, which completes Keytone’s manufacturing offering to its existing bluechip and diversified client base, is conditional upon both the companies executing lease surrender and new lease terms.

Both terms have been agreed with the landlord of the premises upon which the assets are located.

Simultaneously, Keytone has received binding commitments to raise $12.5m through a placement of approximately 40.3 million shares. The proceeds will be used to accelerate the company’s growth initiatives.

Keytone CEO Danny Rotman said: “Demand for the placement was in excess of $12.5m, and has been exceptionally well-supported by both new and existing institutional and sophisticated investors with scale backs applied.

“The company is strongly encouraged by the significant level of institutional support and positive feedback received on the company’s health and wellness strategy including the endorsement of its proposed name change to Halo Food Co. Limited.”