Arnott's Group secures $45m government fund for global Tim Tam expansion
The company behind an iconic Aussie treat staple has secured a $45 million funding boost to help the chocolate biscuit dominate the global market.
The company behind Australia’s iconic Tim Tam product has secured a $45 million government investment to supercharge their manufacturing capabilities – with the aim to help the sweet treat dominate the world market.
The National Reconstruction Fund Corporation (NRFC), Australia’s sovereign investor in manufacturing capability, on Monday announced it would contribute the hefty figure as part of a $1.75 billion debt refinance by The Arnott’s Group.
The existing debt matures in 2026 and the transaction is being arranged by KKR Capital Markets, Morgan Stanley and MUFG.
“NRFC is supporting planned future-growth capital expenditure as the company expands production and prepares to take some of its most iconic brands to the global market,” the fund said in a statement.
“The refinancing helps to secure the future of a market-leading food company that dates back to 1865 and currently employs over 2,500 Australian workers across five facilities.”
Chief executive David Gall said many held fond memories of Tim Tams during travels across the globe.
“Taking such an iconic brand to international markets is something that is good for Australia and which the NRFC is excited to play a part in,” he said.
The Australian chocolate biscuit has gained international presence, being stocked in all major UK supermarkets and outperforming sale expectations.
Over 5 million packs have been sold since launching in April 2024.
Despite Tim Tams being an iconic Australian staple, The Arnott’s Group is not Australian-owned.
In 2019 it was purchased from the US-owned Campbell’s Soup by private equity company KKR.
Arnott’s was first sold to Campbell’s Soup in 1997.
“For this great company to thrive into the future it needs to be positioning itself as a leader in advanced manufacturing in Australia and adapting its production lines to be future ready,” an NRFC spokesperson said.
The deal represents the third debt investment made by the NRFC, which is mandated to be active across the entire capital stack from debt to equity. The NRFC has announced 17 investments totalling $1.02 billion since it began investing in late 2024.
