Health and wellness food company, Forbidden Foods, says its acquisition of plant-based non-dairy brand Oat Milk Goodness for $3.42 million is a “strategic opportunity” to expand the business.
Oat Milk Goodness (OMG) was co-founded by Australian cricketer, Steve Smith, and launched in Woolworths stores in March 2023. Its annualised revenue is $1.2 million, Forbidden Foods said.
The acquisition will be settled by 285 million new fully paid ordinary shares issued to Forbidden Foods for 1.2 cents per share.
“The combined entity will leverage the respective strengths of both companies in sales & marketing, logistics and supply chain management to drive growth for a streamlined, multi-channel product offering,” it said.
OMG’s range includes oat milk, flavoured milks, and ‘prOATein’. According to Forbidden Foods, it is actively pursuing international expansion, with an initial focus on India, where it can leverage Smith’s profile.
Smith said, “We are confident this will provide a springboard for OMG’s future growth. While there are a number of synergies between the businesses, OMG has the potential to benefit from the agreement through access to capital markets and international expansion opportunities. I would like to take this opportunity to thank all shareholders, as well as key management for their support as we progress the business’ next phase of growth.”
Forbidden Foods CEO, Alex Aleksic, said, “Strategically, the Forbidden Foods Board and management team holds the view that OMG’s product suite specifically complements Forbidden Foods’ core range of Blue Dinosaur healthy snack foods, by adding a leading health-drink range in a fast-growing market.
”More broadly, this transaction marks the Company’s maiden step in transitioning to a brand manager in the ‘better for you’ segment of the FMCG sector to further capitalise on the consumer shift towards healthy choices. The Company is currently assessing a number of other value accretive opportunities and will provide further updates over the coming months.”
