Freedom Foods Group raises $65 million towards Shepparton expansion

It’s only taken Freedom Foods Group three days to raise half of the $130 million needed to expand its Shepparton high value dairy nutritional ingredients operation.

Nutrition expansion: Freedom Foods Group managing director Rory Macleod says customer demand for proteins is rising.

FREEDOM Foods Group has already raised half the $130 million it requires to expand its high value dairy nutritional ingredients operation at Shepparton.

The food company raised $65 million in just three days from institutional investors and would now seek another $65 million from existing shareholders under an entitlement offer of one share for each 18 held at an issue price of $4.80 each.

Managing director Rory Macleod said $100 million of the capital raised would be used to accelerate its nutritional ingredients production, mostly at its Shepparton plant, while the other $30 million would be used to support its day-to-day trading operations.

Freedom Foods began production of nutritional ingredients micellar casein, native whey protein isolate and lactoferrin at the Shepparton plant earlier this year.

Mr Macleod said the company was experiencing strong customer demand for these proteins, with prices at or above what was articulated in its initial business plan.

He said the company had commitments from customers for all its current production of the three proteins.

“We’ve developed some very unique products,” he said.

“We now see ability to expand those nutritionals.”

The dairy proteins are used as ingredients in sports nutrition products, medicines, weight loss and digestive health products.

Mr Macleod said Freedom Foods planned to increase the size of its milk pool to more than 400 million litres in 2019-20 as it took an “industry-leading role to meet the greater demand for UHT dairy products in Australia, South-East Asia and China”.

He said the company was planning to expand the nutritional ingredient extraction business to include a range of other proteins found in milk.

Mr Macleod said the Perich family company Arrowvest Pty Limited, which owned 54.86 per cent of Freedom Foods, would take up its full entitlement of shares in the offering.