Freedom Foods, part of the Australian Freedom Nutritional Products group, is to acquire the biscuit manufacturing assets of Sydney-based Cookie Man.
The deal, which Freedom said would be funded out of existing bank facilities, is expected to close on 15 May.
Freedom said the acquisition would significantly increase its manufacturing capacity and enhance its opportunities to expand its 'free from' range of biscuits and cookies into new product areas in the 'free from' market, such as savoury baked products.
Freedom also said that it would continue Cookie Man's existing contract packing accounts with major grocery chains.
As a result of the acquisition, Freedom said it would be relocating its biscuit manufacturing operations in Cheltenham, Victoria to larger premises in Hornsby, New South Wales.