Australian Dairy Nutritionals Group to sell Camperdown Dairy’s assets
Australian Dairy Nutritionals Group (ADNL) said that its board has announced the signing of an agreement to sell Camperdown Dairy’s fresh processing assets and transfer the lease of the Manifold Street processing site.
The transaction, set to take place after market close on 2 June 2023, marks a strategic move for Australian Dairy Nutritionals Group.
The purchase price for the assets stands at AUD 1,050,000, with a deposit of AUD 50,000 payable today. Settlement is scheduled for 26 June 2023, subject to the fulfillment of certain conditions precedent by 21 June 2023. These conditions include obtaining the landlord’s consent for the lease transfer to the buyer and conducting further due diligence investigations pertaining to the buyer’s proposed dairy production and trade waste requirements.
Should any condition precedent remain unsatisfied, the deposit will be promptly refunded to the buyer.
The buyer, a newly incorporated entity established specifically for this transaction in May 2023, shares common ownership with a well-established food manufacturer and consumer brand owner boasting over 30 years of experience in the retail and food service sectors.
Australian Dairy Nutritionals Group has conducted due diligence on the buyer and its related entities, thoroughly analyzing the group’s corporate structure and financial statements of the Related Entity.
The Related Entity has demonstrated a track record of profitability, achieving over AUD 2 million in net profit over the past two financial years, with a net asset position surpassing AUD 10 million (excluding goodwill).
Based on these findings, Australian Dairy Nutritionals Group is confident in the buyer’s financial capacity to successfully complete the sale. Notably, the transaction is not conditional upon the buyer securing external financing for the purchase price.
The proceeds from the sale will be utilized to meet Australian Dairy Nutritionals Group’s general working capital requirements. Furthermore, the sale is expected to yield monthly savings of AUD 30,000 by eliminating residual costs associated with discontinued operations at the Manifold Street site.
This strategic agreement reflects Australian Dairy Nutritionals Group’s commitment to optimizing its operations and focusing on core business activities. The sale of Camperdown Dairy’s assets aligns with Australian Dairy Nutritionals Group’s vision for sustainable growth and solidifies its position within the dairy industry.