SunRice Group to acquire SavourLife in strategic expansion into branded pet food

In a significant strategic move, the SunRice Group has announced the acquisition of SavourLife, an Australian pet food company known for its premium dog food and treats. This deal, valued at A$20.3 million, marks a key step in SunRice’s expansion into the branded pet food market through its CopRice division.

SunRice Group’s Major Acquisition

The SunRice Group has formalized a share purchase agreement to acquire 100% of SavourLife. This acquisition aligns with SunRice’s strategy to bolster its presence in the companion animal market, leveraging CopRice’s existing manufacturing and nutrition capabilities to drive growth. SavourLife, with its strong social mission of saving and re-homing abandoned dogs, will now benefit from CopRice’s infrastructure to scale its operations further.

SunRice Group acquires SavourLife for A$20.3 million, expanding into the branded pet food market. The deal integrates SavourLife’s mission with CopRice’s capabilities.

SavourLife, renowned for its premium dog food and treats, has donated over $8 million to Australian dog rescue organizations and supported the re-homing of more than 63,000 dogs since its inception. This acquisition is not just a business expansion but also a continuation of SavourLife’s mission under CopRice’s stewardship.

Strategic Impact and Financial Details

The integration of SavourLife into CopRice’s operations is expected to enhance the EBITDA contribution of CopRice to the SunRice Group starting from FY25. The acquisition will utilize CopRice’s current manufacturing facilities and supply chain, aiming to improve operational efficiencies and create future growth opportunities. SavourLife’s revenue for the year ending April 30, 2024, was reported at $33.4 million, with a normalized EBITDA of approximately $2.8 million.

SunRice Group CEO, Paul Serra, expressed enthusiasm about the acquisition, highlighting that it positions CopRice to tap into the growing demand for premium pet food products in Australia, which boasts one of the highest dog ownership rates globally. Serra emphasized that SavourLife’s integration will complement CopRice’s existing product line, known for its quality ingredients. He also noted the commitment to continuing SavourLife’s mission to support dog rescue groups.

SavourLife’s Continued Mission and Leadership

SavourLife’s Founder, Michael McTeigue, welcomed the acquisition, citing CopRice’s role as a vital partner in the company’s growth. McTeigue, alongside Co-founder Kimberlee McTeigue and the rest of the SavourLife team, will continue their roles post-acquisition. The acquisition is set to complete by August 30, 2024, pending standard conditions precedent, with the purchase price being funded from existing cash reserves and available debt facilities.

Our Take on the Acquisition

The acquisition of SavourLife by the SunRice Group represents a strategic consolidation in the Australian pet food market. Experts suggest that this move not only strengthens SunRice’s foothold in the companion animal sector but also underscores the importance of integrating social responsibility with business operations. The use of CopRice’s existing infrastructure to enhance SavourLife’s growth potential is expected to set a precedent for future acquisitions in the sector.