Australian dairy and nutrition powdered products manufacturer Keytone Dairy has agreed to buy dairy powder and ultra-high temperature drink manufacturer Omniblend for $22.6 million.
To fund the deal, Keytone has launched two capital raising programs, that is, placement of up to $8 million to institutional and sophisticated investors and a $10 million share purchase plan, both being offered at $0.43 per new share.
With the acquisition, Keytone will scale and diversify its existing business, with a depth of product offering and manufacturing expertise and capability.
Keytone Dairy said that the transaction would also provide the company with an early mover advantage in China’s health and wellness sector.