Australian nutrition firm Freedom Foods has snapped up local cereal and snacks business Norganic Foods.

Freedom Foods, a unit of listed company Freedom Nutritional Products, has agreed to buy the "healthy" cereals and snacks producer for around A$5.5m (US$5.1m).

Michael Jenkins, company secretary at Freedom Nutritional Products, said the acquisition would see the business "consolidate Freedom Foods' leading position in the health food category".

"The Norganic Foods business has a long-established consumer proposition and will enable Freedom to expand its share of business in the "better for you" segment in both retail grocery and health food channels," Jenkins said.

Some A$1m of the acquisition cost will deferred for a year and is subject to Norganic Foods' performance.