Australian Dairy Nutritionals (AHF) is raising AUD6.5m (US$4.8m) from a share placement to part fund the acquisition of a blending and packaging line for infant formula and to support new product launches.

The publicly-listed dairy company said the offer has “received strong support” from new and existing investors as it entered an agreement to purchase a high-speed blending and canning line for infant-formula tins and nutritional powder bags from equipment maker FA Maker Pty.

AHF said in a filing with the Australian Securities Exchange today (15 December) that it has secured the right to buy the line for US$500,000, 80% of which is to be paid in cash, and the remainder to be financed through the share placement. It also has to pay to transport the line to its Camperdown factory in the state of Victoria.

The new line has the capacity to produce 20 million tins of formula a year, and will in the future enable AHF to tin or bag its own formula and powder products, plus offer external blend and pack services. 

Outside of baby formulas, AHF offers branded dairy products such as milk, butter and yogurt through its Camperdown Dairy and Ecklin South lines, and also provides a private-label service.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Some of the funds from the placement will be channelled into launching two new infant-formula products, Tummy Health and Ecklin South Organic A2 infant formula, including a marketing and promotion plan.