Maggie Beer is selling the 52 per cent majority stake she holds in the gourmet food company she founded.
The sale will give full ownership to ASX-listed Longtable Group, which in 2016 bought a 48 per cent stake in Maggie Beer Products, which is based in South Australia's Barossa Valley.
Maggie Beer started out in pheasant and grape farming and later opened a restaurant, and she has since published several books and regularly appeared on TV cooking shows including MasterChef.
Maggie Beer Products makes gourmet jams, sauces, pastes, ice cream and cooking ingredients, and according to Longtable Group, the company has considerably improved its operating performance in the past year thanks to growth from new categories and major retailer sales, as well as a program to reduce selling, marketing and overhead expenses.
“The Maggie Beer team has successfully managed costs to create a profitable, sustainable business with a very powerful brand that is highly regarded by consumers looking for premium food products,” Longtable managing director Laura McBain told shareholders this week.
“We are currently finalising negotiations to acquire the remaining 52 per cent of the equity in this business that Longtable does not already own, and bring the brand firmly into our portfolio.”
Maggie Beer Products reported a first half positive EBITDA of $1.5m, up from a loss in the previous corresponding period, on modest sales growth of 4 per cent to $11.6m.
The $10m sale includes $8.5m in cash, $1m in Longtable shares, and $500,000 as a convertible note, following the completion of a $13.7 million capital raising.
Maggie Beer, who is now 74, will continue to have a role in product development for two years and intends to become a director of Longtable, according to Fairfax Media.
