Bubs buy is a gateway to goats
BABY food maker Bubs Australia has bought a goat’s milk powder producer in a $39 million deal.
The buyout will set Bubs up to develop the market for infant and adult goat milk products in Australia and in China, the group says.
It has bought NuLac Foods, the owner of the Caprilac and Coach House Dairy food brands, and an almost 50 per cent share in NuLac’s processing facilities.
Bubs chief Nicholas Simms said the deal gave the group an exclusive supply of its key ingredient from one of Australia’s biggest goat milk producers as well as supply from New Zealand farms.
“Clearly, securing access to such an important key ingredient will increase market confidence and mitigate regulatory risk,” he said. “The combined strength of the organisations will deliver a highly compelling proposition and accelerate our collective growth in domestic markets, and in China and South-East Asia.”
It includes NuLac’s Caprilac brand, which includes goats milk powder and yoghurt for adults sold in supermarkets.
Shares in Bubs finished the day up 3 cents, or 3.8 per cent, after coming out of a two-day trading halt, during which the company raised $15 million selling new shares to institutional investors.
The deal includes NuLac’s sales, marketing, intellectual property and brands and a call option to buy Australian goat farms.