Pure Foods Tasmania (ASX: PFT) has completed its acquisition of the Elato Ice Cream brand following an all-scrip transaction.
The company has also confirmed the creation of a dedicated Ice Cream Division that integrates Elato with The Cashew Creamery.
Elato founder Roz Kaldor-Aroni will lead the expanded Ice Cream Division as general manager, with responsibility for sales strategy, product development, and manufacturing optimisation.
Scrip-Only Transaction
Pure Foods Tasmania (ASX: PFT) acquired all intellectual property, brand assets, recipes, and supply arrangements associated with Elato Ice Cream through an initial $50,000 share issue at the company’s 14-day volume-weighted average price.
The company deliberately structured the acquisition as a scrip-only transaction to align incentives and avoid any immediate cash outlay.
The earn-out component allows for up to four million additional shares to be released to Ms Kaldor-Aroni in lieu of salary, based on the Ice Cream Division’s revenue and profitability performance.
“The acquisition of Elato after only four years in the market is validation that award-winning products which focus on innovation and community support are appealing to not only the ice cream buying public but also to like-minded innovators like PFT,” Ms Kaldor-Aroni said.
East Coast Presence
Elato currently generates more than $600,000 in annualised revenue across cinema outlets and more than four hundred supermarkets on the east coast of mainland Australia, including Woolworths.
Its integration with The Cashew Creamery broadens Pure Foods Tasmania’s footprint from a purely plant-based offering to a combined dairy and plant-based platform within the premium frozen desserts category.
The company expects the expanded division to increase the utilisation of its $1.2 million Tasmanian ice-cream manufacturing assets while opening access to new contract-packing and licensing opportunities.
The Ice Cream Division will be formally unveiled at the company’s upcoming annual general meeting, where new products are scheduled to be showcased to shareholders.
Wider Market Engagement
Executive chair Malcolm McAully said the acquisition positions the business for wider market engagement, adding that the transaction “opened up many new opportunities for the company.”
He also acknowledged the work of director sales Robert Knight in enabling the deal.
Pure Foods Tasmania emphasised that the structure of the acquisition reflects a low-risk approach that directly links earn-outs to commercial performance.
The company anticipates the creation of at least three new skilled jobs in southern Tasmania as the division expands and additional product lines are introduced.
