Maggie Beer in $15m bid to sell stake in food empire

FOODIE Maggie Beer says a deal to sell part of her business to a relatively unknown Australian sharemarket-listed entity backed by former Victorian political heavyweights will allow the company to do “new and exciting things”.

Maggie Beer: Selling part of her business. Picture: Bob Barker

POPULAR foodie Maggie Beer has agreed to sell a stake in her namesake business to a listed company backed by former premier Jeff Kennett.

Ms Beer says the deal to sell a 48 per cent stake will allow her business to do “new and exciting things”.

Primary Opinion, a South Melbourne-based business development company that generally focuses on law firms, announced yesterday it was paying $15 million for the stake. The company is led by chairman Tony Robinson, a former chief executive of wealth manager IOOF.

Mr Kennett owns almost 15 per cent of Primary Opinion, according to Bloomberg research, and was previously a director. Former Victorian energy and multicultural affairs minister Nicholas Kotsiras is also an investor.

Maggie Beer Products, a Barossa Valley-based private gourmet food business, has until now been owned by entities of the well-known cook, author and TV presenter and her husband, Colin.

“The way this is structured, we only have to deal with the one partner and we keep the controlling interest,” Ms Beer said.

“It’s business as usual but the money can take us to places we haven’t had the money to go before — to really focus on exports, to do the exciting things we have planned and other things that might come out of the woodwork.”

She said the money would fund a new warehouse, equipment and technologies — “things we need to stay ahead of the curve”.

Primary Opinion said the deal was its first step in a wider investment strategy in the food and beverage sector.

Ms Beer, 71, had previously planned to float her business with the help of leading broker and then Wilson HTM principal Hugh Robertson — a director at Primary Opinion and a shareholder.

Yesterday, she said she would “continue to be actively involved in the business”.

It is expected the deal will result in about $10 million in gross proceeds to help Maggie Beer Products expand. The company will transfer existing shares and issue new equity to Primary Opinion.

Maggie Beer Products’ premium food range — covering pates, pastes, ice creams, jams, verjuice, soups and non-alcoholic beverages — is produced at its own manufacturing facilities and under contract elsewhere.

They are sold through major supermarkets, independents, gourmet food stores and online, and exported to markets including China and Singapore.

The deal is expected to be completed by the end of June.

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