Australia’s Freedom Foods Group is to acquire nutrition products manufacturer Crankt Protein in a deal valued in gross terms at AUD3.5m (US$2.5m).

After deductions for working capital loans and other offsets, the net cash consideration payable is AUD2.3m, Sydney-listed Freedom Foods said in a statement, adding that the gross purchase price equates to a price-to-gross-sales multiple of 0.5x based on fiscal 2019 forecast sales.

Located in New South Wales, Crankt produces protein snack bars and shakes, which are sold through petrol and convenience outlets, fitness retailers and grocers in Australia and New Zealand. In the current fiscal year, petrol and convenience channels in Australia accounted for 50% of total Crankt brand sales, Freedom Foods noted.

Back in February, Freedom Foods announced it had secured an agreement to distribute the Crankt sports nutrition brand in Australia for a minimum of three years, along with an option to buy the brand “based on sales performance”.

“The Crankt brand provides for an everyday mainstream consumer proposition, aligned to the Freedom Foods Vital Strength brand, which is positioned as a premium brand in the sports and nutrition category,” Freedom Foods said today (13 August).

“Importantly, the Crankt brand provides a unique vertical integration to Freedom Foods’ expanding packaging capabilities in beverage and bar formats and sourcing of protein ingredients from internal dairy nutritional capabilities coming online at Shepparton in early 2019.”

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.

In March, Freedom Foods revealed it was investing in its Shepparton facility north-east of Melbourne and also at a plant in Ingleburn, and said the latter would help the company expand its branded range into Australia’s retail, convenience, petrol and foodservice channels.   

And the same month, the firm said it would issue AUD200m of equity to fund capital expenditure and possible acquisitions, and to “accelerate” the company’s growth strategy”.