Pure Foods Tasmania Adds $600k Revenue with Elato Ice Cream Buyout
Pure Foods Tasmania has acquired premium ice cream brand Elato, integrating it with its Cashew Creamery to form a new Ice Cream Division led by Elato’s founder. This move broadens PFT’s product range and leverages existing manufacturing capabilities.
- Acquisition of Elato Ice Cream adds $600k+ annual revenue
- Elato founder Roz Kaldor-Aroni appointed General Manager of new Ice Cream Division
- Transaction structured with initial shares and milestone-based earn-outs
- Integration merges Elato with The Cashew Creamery to expand product categories
- Aroni Family Trust invests $200,000 via shares and options in PFT
Strategic Acquisition to Broaden Product Portfolio
Pure Foods Tasmania (ASX – PFT) has completed the acquisition of Elato Ice Cream, a premium brand known for its award-winning products and strong presence on Australia's East Coast. With annualised revenues exceeding $600,000 and distribution across cinemas and over 400 supermarkets including Woolworths, Elato represents a significant addition to PFT’s portfolio.
The acquisition is structured as a fully scrip-based deal, with an initial payment of $50,000 in PFT shares and additional milestone-based earn-outs tied to the performance of the newly formed Ice Cream Division. This approach minimizes upfront cash outlay while aligning incentives for growth.
Formation of a New Ice Cream Division
Elato will be merged with PFT’s existing Cashew Creamery, which focuses on plant-based frozen desserts, to create a multi-brand platform that spans both traditional dairy and plant-based categories. This strategic move broadens PFT’s market reach and product appeal, positioning the company to capture a wider consumer base.
Roz Kaldor-Aroni, Elato’s founder, has been appointed General Manager of the Ice Cream Division. Her role will focus on driving sales growth, new product development, and optimising manufacturing operations. Notably, Roz’s compensation will be delivered in PFT shares, with a portion linked to division performance, ensuring strong alignment with shareholder interests.
Operational Synergies and Growth Opportunities
The acquisition enables PFT to better utilise its $1.2 million ice cream manufacturing equipment, improving operational efficiency and margins. Additionally, Roz’s expertise is expected to unlock contract-packing and licensing opportunities, expanding commercial reach beyond current channels.
The Aroni Family Trust has also committed to investing $200,000 in PFT through a share and options placement, further cementing the partnership and providing capital to support growth initiatives.
Local Impact and Future Outlook
Integration efforts are already underway, with plans to consolidate production in Tasmania. This is anticipated to create at least three new skilled jobs in southern Tasmania, supporting local employment and industry development.
The Ice Cream Division will be officially launched at PFT’s upcoming Annual General Meeting, where new product initiatives and strategic plans will be presented to shareholders. This acquisition marks a pivotal step for PFT as it diversifies its offerings and strengthens its position in the competitive frozen dessert market.
Bottom Line?
PFT’s acquisition of Elato and formation of a new Ice Cream Division signals a strategic expansion with promising growth and operational synergies ahead.
Questions in the middle?
- How will milestone earn-outs impact PFT’s future share issuance and capital structure?
- What new products and innovations can be expected from the combined Ice Cream Division?
- How quickly will the integration translate into increased revenue and profitability?