Bellamy’s acquires Camperdown Powder
Bellamy’s has acquired the Camperdown Powder canning facility in Braeside, Victoria.
Camperdown Powder has Certification and Accreditation Administration of the People’s Republic of China (CNCA) licensing which is expected to help Bellamy’s get its infant formula into China more easily.
Bellamy’s will pay AUD $28.5 million for a 90 per cent share in Camperdown Powder.
Bellamy’s also announced it has further negotiated its supply contract with Fonterra, a move which will cost Bellamy’s AUD $27.5 million.
The new supply arrangement will remove projected shortfall payments to Fonterra over the life of the agreement, allows for product to be sent to the new Camperdown facility for canning and introduces volume based rebates and a modified bulk formula price.
Bellamy’s will raise AUD $60.4 million in capital through new shares to help cover the costs of the Camperdown acquisition and the new Fonterra supply deal.
Bellamy’s has pre-warned it will now likely post a loss between AUD $9.5 – $14.0 million for the second half of its 2017 financial year.
Andrew Cohen, Chief Executive Officer of Bellamy’s, said the Camperdown acquisition will strengthen Bellamy’s strategic position by increasing control of its supply chain and China’s CFDA registration process.
“The acquisition will help build our brand credibility with trade partners and consumers,” he said. “We believe this is an attractive commercial investment.”
Cohen said the Fonterra supply change was “a strategic and economic reset”.
“It supports the Camperdown acquisition and investment rationale and fundamentally realigns incentives with Fonterra for future growth,” he said.
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