FFI adds Olympic Foods to holdings
FFI Holdings is planning to expand its Jandakot-based food manufacturing business following the acquisition of Olympic Fine Foods.
Olympic is FFI’s second acquisition in the past year, coming after the June 2003 purchase of the cake topping and confectionary operations of Sunrise Confectioners.
FFI chairman Rodney Moonen said he planned to restructure the Olympic business and merge its operations with FFI’s existing cake topping and confectionary operations at Jandakot.
The purchase together with working capital and restructuring costs will require an investment of $1.8 million, to be funded from cash reserves and existing credit lines.
Gross revenue from the new business is expected to exceed $4 million and Mr Moonen said the restructure and merger was expected to significantly improve profit margins.
The Olympic business, established in Balcatta in 1981, was sold by loss-making Melbourne company Lowan Australia (formerly Consolidated Foods Australia).
Lowan’s sale of the Olympic business followed last year’s sale of a second WA food business, Mundella Foods, to original founders Anne and Peter Hector.
The Hectors paid $1.476 million for the Mundijong-based dairy business, which they established in 1975.
