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‘Free-from’ food market heats up
A firm has advised Freedom Foods on its $65 million equity raising to fund the acquisition of a smaller rival.
Lara Bullock
Firms: DLA Piper (Freedom Foods Group Limited)
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Deal: Freedom Foods' $65 million equity raising to fund $35 million acquisition of Popina Foods
Value: $65 million
Area: M&A and Equity Capital Markets
Key players: DLA Piper corporate partner David Ryan led the team for the entitlement offer, with assistance from senior associates Adrian Tan and Horace Wu and lawyer Harriet Johnston. Corporate partner Bryan Pointon and Mr Tan advised on the acquisition.
Deal significance: Freedom Foods undertook $65 million equity raising via a placement and accelerated non-renounceable entitlement offer.
The funds raised will be used to support Freedom Food's acquisition of oat-based cereal and snack manufacturer Popina Foods for approximately $35 million, as well as the construction of a new UHT processing facility.
Freedom Foods operates in the 'free-from' market segments comprising food and beverage products manufactured to be free-from key allergens such as gluten, wheat, nuts, dairy and, in the case of a2 milk™, A1 protein.
DLA Piper partner David Ryan said: "We are delighted to have advised Freedom Foods on this equity raising, which will enable the group to continue its growth strategy and to expand its market share in the food industry, particularly amidst the growing demand for allergen-free food."
