Freedom Foods has sold its cereals and snacks operations to Arnott’s for $20 million as it focuses efforts on its dairy, nutritional and drink products.
Freedom on Thursday said the sale included brands Arnold’s Farm, Barley+, Freedom Foods, Heritage Mill and Messy Monkeys.
Arnott’s will also gain manufacturing sites in Darlington Point and Leeton in NSW, and in Dandenong in Victoria.
Freedom interim chief executive Michael Perish said the company was simplifying its product range so it could maximise growth opportunities.
The sale comes after the company in November appointed an adviser to help consider options for the cereals and snacks operations.
Net cash proceeds were estimated at $11 million due to the costs of the sale and equipment leases.
Arnott’s chief executive George Zoghbi said the purchase would help its strategy of entering new product categories.
Freedom will change its name as a result of the sale of the eponymous cereal brand.
Shares were in a trading halt at 1132 AEDT. They last traded for $3.01.