Pure Foods Tasmania is acting on its charted growth strategy, revealing plans to buy the business and assets of Daly Potato Company for $1.8 million. The company listed on the ASX in April after raising $3.5 million through a public offer with funds intended to acquire synergistic or complementary food and beverage businesses in Tasmania. Its existing premium food businesses include Tas Pate and Woodbridge Smokehouse.
Daly Potato Company emerged from a 30-year-old farm owned by the Daly family on Tasmania’s southeast coast. Its premium potato salads are sold to major supermarket chains including Woolworths, Coles and Metcash with sales growing in the last three years from $211,000 to $2million.
According to an article on smallcaps.com.au¸ Pure Foods revealed the pair have been in talks for some time regarding a possible merger. It however, stated that discussions were non-committal until now, when Daly was at the crossroads between continuing to manage its burgeoning business or invest heavily to meet increasing national and international demand for its products.
Pure Foods managing director Michael Cooper said the acquisition cements the company’s strategy of moving into new food categories: “Meal solutions is a $1 billion market in Australia alone, and we also see a large opportunity to support our Asian customers with unique 100% Tasmanian-based meal solutions.”