Pure Foods Tasmania has added to its seafood business through the acquisition of local firm Brilliant Food Australia.
The publicly listed company has been manufacturing Brilliant Food Australia products since November.
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Pure Foods Tasmania markets seafood under its Woodbridge Smokehouse brand.
Sydney-based Brilliant Food Australia sells a range of salmon and trout products to wholesale clients. Its product line-up also includes a range of fish-based spreads and dips.
In a stock-exchange filing today (2 April), Pure Foods Tasmania said the deal would mean the company moves from a 12.5% margin under the contract-manufacturing deal between the two businesses to a “full product sales margin”.
Brilliant Food Australia’s products are sold in “only 50 stores across a narrow geographical area, providing a foundation for broader national expansion alongside the Woodbridge Smokehouse products”, it added.
Pure Foods Tasmania said it would pay A$300,000 (US$205,888) – in the form of shares – for the business.
The deal, the company added, would have boosted its 2025 financial year revenue by 24%. In that fiscal year, which ran to 30 June, it booked revenue of A$5.4m.
On an annualised basis, Brilliant Food Australia generates around A$1.3m in revenue, Pure Foods Tasmania said.
Malcolm McAully, Pure Foods Tasmania’s executive chairman, added: “Brilliant Food Australia is a proven, well-regarded brand with excellent product fit for our core business strategy. The acquisition increases utilisation of our Woodbridge facility and provides a platform to expand distribution of the product range through our existing network.”
Pure Foods Tasmania has a stated strategy of “acquiring and integrating premium food businesses with established product-market fit”.
In November, the company purchased Australian ice-cream brand Elato in a similar share-based deal.
In the 12 months to the end of June, Pure Foods Tasmania reported a net loss of A$2.8m, compared to one of A$3.9m a year earlier.
Revenues declined 28% to A$5.4m. The company said its performance was impacted by the exit from “unprofitable” product lines.
Last month, Pure Foods Tasmania booked an 18.4% fall in half-year revenues to A$2.6m. A jump in tax expenses meant the business posted a net loss of A$6.8m for the six months to the end of December, versus one of A$1.3m a year earlier.
