Australian Dairy Farms has completed its deal to acquire local organic infant formula maker Flahey’s Nutritionals.
And, in an announcement to the Australian Securities Exchange (ASX), it revealed it will in future be known as Australian Dairy Nutritionals to reflect the move into a new area.
The deal was first announced back in August with a proposed purchase price of AUD1.5m (US$1.1m).
Australian Dairy Farms said the deal was a key step for it in entering the dairy nutritionals and infant/toddler formula market.
While Flahey’s Future baby formula is new to the Australian market, it is being slowly launched across the country through pharmacies such as Chemist Warehouse, Chemist Outlet, Blooms the Chemist, Priceline, Soul Pattinson and Pharmacist Advice.
Flahey’s Nutritionals has been developing a range of premium infant formula products.
When the deal was first announced, Peter Skene, the chief executive of Australian Dairy Farms, said the market for organic infant formula in Australia and New Zealand is expected to more than double between 2017 and 2023, from AUD230m in 2017 to AUD546m by 2023.
He said at the time the company’s strategy was to transition “from a conventional basic producer of low-value products, to a premium differentiated branded business”.