Health and wellness food company, Forbidden Foods, has completed the acquisition of 100 per cent of the issued capital of plant-based non-dairy brand Oat Milk Goodness (OMG). The companies settled for $3.42 million, via the issue of 285m new fully paid ordinary shares in Forbidden Foods at a price of $0.012.
OMG was co-founded by Australian cricketer, Steve Smith, and launched in Woolworths stores in March 2023. Its annualised revenue is $1.2 million, with a range including oat milk, flavoured milks, and ‘prOATein’.
Forbidden Foods stated it was actively pursuing international expansion opportunities with an initial focus on India, to leverage Steve Smith’s profile in the Indian market and take advantage of increased demand for health products among Indian consumers.
The company stated it was close to finalising all required integrations into the existing framework and is now focused on capitalising on recent sales momentum. Post announcement of proposed acquisition on 14 August, OMG achieved sales of over $364,000 between 1 July and 24 September, which will be recognised as revenue for the combined entity.
Executive changes
Following completion of the transaction, Forbidden Foods implemented a number of changes to its Board of Directors, which included the appointment of OMG co-founder, Daniel Rootes, as a Non-Executive Director.
As an experienced investment advisor with JP Equity Partners, Rootes also brings an informed strategic perspective which leverages his experience and extensive networks in equity capital markets.
Concurrently, Katie Eshuys and Marcus Brown have resigned from their respective directorships. To ensure a proper handover is complete, Eshuys will officially step down on 31 October. Brown’s resignation is effective as of 27 September, but he will retain his position as Chief Executive Officer – US operations on a part time basis.
Forbidden Foods’ chief executive officer, Alex Aleksic, said all resolutions were unanimously passed with the full support of the shareholder base at the Extraordinary General Meeting.
“I’d like to welcome Daniel to the Board, and acknowledge the contribution of our outgoing Directors,” Aleksic said.
“Post-acquisition, the Board and management team are firmly of the view that we have a unique opportunity to build Forbidden Foods into a significant FMCG business, with growth opportunities in both domestic and international markets.
“We look forward to providing more updates in the months ahead as we execute on our stated development strategy.”
