Australia’s largest allergen free food manufacturer Roma Foods is looking to sell the business, saying an unsolicited offer in 2021 sparked the process.
Roma Foods managing director Max Buontempo said the unprompted approach prompted the directors to undertake a formal process to test market interest in the business.
“The process will investigate a range of options for the future of Roma Foods including a 100 per cent trade sale.
“With annual revenue forecast to exceed $35 million in the next 12 months, we believe there is significant opportunity for a new owner or investor to accelerate the growth trajectory of the business,” Buontempo said.
The company began almost 70 years ago (1953) as a pasta producer and has grown into one of Australia’s leading allergen-free, gluten-free, and plant-based manufacturers.
It manufactures pasta, cereals, snack foods, and baking mixes from its facility in Carrum Downs, Victoria, launching more than 40 new products into the mainstream and health/better-for-you categories in recent years.
Last year, Roma Foods was awarded Product of the Year in the Vegan Snacking category for its recently launched plant-based Spliits crispbread.
CEO Sam Schachna said the gluten-free vegan crispbreads, made with veggies and no added sugars, aligned with the company’s mission of creating great food for healthier living and the award was “a clear endorsement of that approach”.
“Our community are telling us they want to eat better and live healthier lives. It is pleasing to see sustainable foods becoming more sought after by consumers, which is resulting in more healthy offers available across the supermarket. Our vision is to have a Roma Foods product in every family’s pantry. We are getting closer to achieving that all the time,” Schachna said.
Buontempo said the company had a proven track record of growth and profitability over many years, making it an attractive opportunity for investment or acquisition.
Schachna joined Roma in January 2020 and has overseen the expansion of its product range. He said the company was in a strong position to take advantage of changing market emphasis towards locally manufactured high growth plant-based and allergen-free foods.
Since then, the business was granted $457,000 in the second round of the federal government’s manufacturing modernisation fund towards a $1.8 million capital investment and associated reskilling program. Projects include a maintenance centre of excellence for the site engineering team (already commissioned) and various end-of-line packing automations that will continue to improve efficiencies.
It also received funds through the Victorian Government's Grant Global Gateway program, part of a broader export recovery package designed to help established exporters stabilise their business and adapt export strategies in response to Covid.
Schachna has also driven a strategic pivot into mainstream categories and launched new brands to drive growth in FY22 and FY23, the company said.
MA Moelis Australia has been appointed to find a new investor or buyer. It expects the process to be completed in early FY23.
