Health & wellness food company Forbidden Foods is to acquire Oat Milk Goodness (OMG), an Australian plant-based non-dairy milk company, in a $3.42m deal.
Co-founded by Australian cricketer Steve Smith, OMG was established to develop a home-grown oat milk product that takes advantage of Australia’s abundant supply of natural oats, and is also free of industrial seed oils such as canola, rapeseed or sunflower oil which can cause inflammation.
Since launching, OMG’s core oat milk product has established strong traction among merchant customers in the café and barista industry. OMG has since broadened its product range to include flavoured milks and ‘prOATein’ options, and has expanded distribution through ranging in Woolworths and Ampol Foodary outlets. Through its distribution channels, OMG is also ranged in leading independent and health food stores.
OMG is actively pursuing international expansion opportunities with an initial focus on India, where it has a unique opportunity to leverage Steve Smith’s profile in the Indian market and take advantage of increased demand for health products among Indian consumers. OMG’s near-term priorities are to fast-track the expansion of its existing product range, including more prOATein options, overseas expansion, while also building out its sales team and allocating resources to targeted marketing campaigns.
Forbidden Foods’ Chief Executive Officer, Alex Aleksic said: “We are pleased to confirm this strategic acquisition with a company of OMG’s calibre. The proposed transaction represents a unique opportunity to leverage the respective strengths of both companies and create an integrated multi-channel, health-focused products business serving domestic and international markets.
“Strategically, the Forbidden Foods Board and management team holds the view that OMG’s product suite specifically complements Forbidden Foods’ core range of Blue Dinosaur healthy snack foods, by adding a leading health-drink range in a fast-growing market.
“Both parties have also identified numerous synergy opportunities in sales & marketing and the streamlining of overheads and internal administration costs, which will drive growth and cost efficiencies.”
Oat Milk Goodness co-founder, Steve Smith, said: “We are excited to have entered into this SPA (Share Purchase Agreement) with Forbidden Foods and are confident that it will provide a springboard for OMG’s future growth.
“While there are a number of synergies between the businesses, OMG has the potential to benefit from the agreement through access to capital markets and international expansion opportunities. I would like to take this opportunity to thank all shareholders, as well as key management for their support as we progress the business’ next phase of growth.”