The Arnott’s Group has signed an agreement to acquire cereal and snacks business Diver Foods Pty Ltd as part of plans to launch a new business division, Good Food Partners.
While the Group’s portfolio is famous for its iconic biscuits, soups and juices, the acquisition is part of an ambitious growth strategy that involves entering new products categories.
Under the agreement, The Arnott’s Group will acquire 75 per cent of Diver Foods. The purchase is expected to complete later this month. Chris Diver, the current owner and Managing Director of Diver Foods, will continue to own 25 per cent of the business.
The acquisition complements The Arnott’s Group’s purchase of the cereal and snacks operations of Freedom Foods, which was agreed in December and is expected to complete in March.
The Arnott’s Group CEO George Zoghbi said, “The Arnott’s Group has become the custodian of a 150 plus year legacy of Australian food manufacturing and we have made no secret of our desire to build on that legacy by expanding our operations locally.
“Diver Foods presents a fantastic strategic growth opportunity for us, with products and capability that will complement our existing brands while helping to diversify our iconic product portfolio and drive our entry into new categories.
“Our intention is to create a new cereal and snacks division that will bring the Diver Foods and Freedom Foods businesses together when the transactions are complete.”
Diver Foods owner and Managing Director Chris Diver said, “Over the last 18 years, Diver Foods has successfully partnered with an array of leading brands and retailers to become one of Australia’s largest cereal and snacking manufacturers.
“We see huge potential for the future and are excited at the prospect of joining with a business like The Arnott’s Group that has similar values and strong Australian heritage. Together, we will remain focused on quality, local ingredients, investing in sustainable supply chains and partnering with the communities in which we operate.”