Arnott's Biscuits Limited agreed to acquire Cereal and Snacks operations from Freedom Foods Group Limited (ASX:FNP) for AUD 20 million on December 17, 2020. The consideration is paid in cash. The sale includes cereal and snacks manufacturing facilities in Leeton and Darlington Point in NSW and in Dandenong in Victoria, as well as all brands associated with the business, including Freedom Foods, Messy Monkeys, Heritage Mill, Arnold's Farm and Barley+. The sale does not include the Crankt Protein brand, which will remain as a part of the Freedom Foods Group product portfolio. Post-acquisition, Freedom Foods cereals brand, Freedom Foods Group will change its corporate name. As part of acquisition, majority of cereal and snacks employees will transfer to the new owners. The transaction is subject to satisfaction of customary conditions. The transaction is expected to complete by March 1, 2021. As of March 2, 2021, the payment of AUD 16.1 million was made and the ownership of certain fixed and other assets are transferring to Arnott's Group as part of first stage of a phased completion. Freedom Foods Group continues to operate the Cereal and Snacks business till the full completion which is expected to take place by the end of March 2021. Freedom Foods Group expects that the total consideration for the sale will remain at approximately AUD 20 million with net proceeds of approximately AUD 11 million subject to adjustment for transaction costs and the agreed inventory balance at the final completion date. The proceeds of the transaction will be used to recapitalize Freedom Foods. Moelis Australia Advisory Pty Ltd acted as financial advisor and GRT Lawyers acted as legal advisor for Freedom Foods Group Limited. Ernst & Young LLP (UK) served as a due diligence provider for Arnott's Biscuits Limited.

Arnott's Biscuits Limited completed the acquisition of Cereal and Snacks operations from Freedom Foods Group Limited (ASX:FNP) on March 31, 2021.