Freedom Foods Group has sold its Specialty Seafood business to the Australian family-owned Tempo Group. The business unit distributed canned seafood products under the brands Paramount Salmon and Brunswick Sardines.
It has been six months since the company flagged its intention to possible offload the business, having worked on a dual-track strategy with Moelis Australia on whether to sell the business or retain and improve it.
CEO Michael Perich said the sale marked the completion of its structural reset, instigated after its horror year in 2020, including $590 million in write-downs; almost $175 million in losses for the year, having to restate several years’ results, including FY19 pivoting from an $11.6 million profit to a $145.8 million loss
Selling its Cereal and Snacks business to The Arnott's Group and a successful capital raise in May saved the company, which has shown financial improvement this year. But the waters are not yet calm for the company, with two class actions, US arbitration for a contract dispute with Blue Diamond Growers, and an investigation by ASIC still in play.
“The divestment of Specialty Seafood means that we are now fully focused on Plant-based Beverages and Dairy and Nutritionals. These two divisions, with their portfolios of popular, growing brands, represent the future of the Company,” Perich said.
Tempo Group is a retail supplier that also provides brand development, consultancy services, and exclusive distribution.
Executive director Nicholas Stergiotis said the buy complements and enhances the copmany’s growing food and beverage division.
“The recent acquisition of Freedom Foods’ Speciality Seafood division means that the Paramount and Brunswick canned seafood brands can continue to service retail partners and customers in the Australian and New Zealand markets with great products,” Stergiotis said.
