Health foods company Buderim Group (ASX: BUG) is cashed up for its transition towards a company rebrand that will focus on plant protein foods following the sale of their ginger production business for $13 million.
The sale has long been a formality for Buderim which will be followed by a name change to Health and Plant Protein Group. The divestment sends The Ginger Factory (a food production and tourism facility in Yandina, Queensland), plus all associated brands, as well as Fiji-based ginger business Frespac ginger to Buderim Foods Pty Ltd.
“Following completion, the Company achieves its strategic ambitions of a clear focus in furthering market leadership in branded macadamia products, our foundation in the health and plant based protein foods category,” said Buderim Group Chairman, Guy Cowan.
From cash proceeds of the sale, $5m has used to pay back convertible note holder liabilities, while the remainder will be used to drive the Company’s USA-focused growth initiatives.
“As owner of the largest macadamia orchard in Hawaii with distribution footprint across 52,000 retail outlets in the USA, HPP Group has the vertically integrated expertise and capacity to promote the health benefits of macadamia consumption on a highest and best use basis,” said Executive Director, Denis Lin who will assume leadership of HPP Group with current CEO Andrew Bond following the ginger business.
“We will utilise our deep knowledge of distribution channels in the USA and throughout the world to look for additional opportunities that can further enhance shareholder value and returns”.
Owning RHO and MacFarms brands, HPP Group is one of the largest macadamia nut processors in the US where the macadamias are popular for their rich nutrients and classified as a premium plant protein.
Their farms in Hawaii will form the cornerstone of HPP Group’s strategic goals to become a leading producer of plant-based proteins in the US where they already distribute macadamias to more than 52,000 stores including Walmart and CVS Pharmacy.
The macadamia division alone delivered $42.4m in sales revenue.
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