29.04.08
THE REAL McCOY BUYS ARNOTT’S SALTY SNACK FOODS
What's New?
A group of Australian investors, including senior management of The Real McCoy Snackfood Co, have purchased all the shares in Snack Foods Limited (otherwise known as Arnott’s Snackfoods).
Snack Foods Limited, which owns popular brands such as Kettle Chips, Thins, Cheezels, CCs, French Fries, Samboy and Tasty Jacks, is being acquired from Campbell Arnott's after six years of ownership.
Which products will be included the new brand portfolio?
The combined brand portfolio will include Thins, Cheezels, Kettle Chips, Tasty
Jacks, French Fries, CC’s, Samboy, Real McCoy, Jumpy's and Burgerman. In addition to these brands this company will be the proud manufacturer of some of Australia’s
leading supermarket brands. The company will also continue to distribute the
very successful Pringles brand throughout Australia.
What were the financial terms of the acquisition?
Both The Real McCoy and Campbells/Arnotts are bound by a confidentiality agreement, which does not allow them to reveal the financial terms.
Why is the Real McCoy buying the Arnott’s snack foods business?
The Real McCoy has experienced significant organic growth over the past 15 years. The opportunity to acquire the Arnott’s salty snack foods business represents a unique opportunity to continue this growth path and to reinvigorate some of Australia’s most popular salty snack food brands.
What plans does The Real McCoy have for the Arnott’s Snackfoods brands?
Arnott’s Snackfoods brands have strong consumer recognition and we plan to reinvigorate them with extended marketing, product development and distribution programs. We will also strengthen our management and sales teams and enhancing manufacturing processes. We plan to create a focused snack foods business that is well positioned to expand sales of its core brands.
How long will the acquisition take to be completed?
We expect the sale to be completed on 11 May 2008. Due to the integration of some functions there will be certain services that will continue to be provided by Arnott’s for a period of time.
What will happen to Arnott’s and The Real McCoy employees?
Arnott’s and The Real McCoy are working together to ensure minimum disruption to employees. Under the new ownership, those employees who are employed directly by the Arnott’s Snackfoods business (i.e. Snack Foods Limited) will remain employees of that business with the same terms and conditions. This will also be the case for people employed by The Real McCoy.
For the avoidance of doubt, people employed at the various factory locations
of Smithfield NSW (Arnott’s Snackfoods), Knoxfield VIC (Arnott’s
Snackfoods) and Blacktown NSW (The Real McCoy) will remain employed by the same
employer under the same terms as conditions as they are currently employed.
Will there be any significant changes to operations?
In the coming months Snack Foods staff at North Strathfield will be relocated
to a new Sydney facility, which has not yet been confirmed. The Real McCoy
will communicate with the affected staff throughout this process in an attempt
to reach a solution that suits the majority of these employees.
Other changes will be the growth of our management and sales teams, and expansion of our distribution program.
What will happen to the Arnott’s Brand?
The Arnott’s brand will remain the property of Campbell Arnott’s. Snack Brands Australia will be allowed to use this brand for a limited time until packaging can be changed over.
Why is this a good deal for consumers?
Combining the two companies will bring a renewed focus to the Snack Foods brands previously owned by Arnott’s. It will also provide opportunities for McCoy to gain wider distribution for some of its more popular brands. The snack foods market is a fast-paced environment and the combined business will be better placed to meet the opportunities in the market place.
Is this acquisition effective immediately?
This acquisition will be effective on completion of the sale, which is expected on 11 May. However as part of the sale Arnott’s will continue to provide certain services to Snack Brands Australia for a period of time. This is being done to allow the orderly transition of these services to the new company.
How will suppliers and customers of Arnott’s Snackfoods and The Real McCoy be affected?
Suppliers and customers should conduct business with both companies in the usual manner until they are otherwise notified. This includes paying bills and placing orders. The Real McCoy plans to honour all existing agreements with suppliers and customers.
Will Snack Foods Australia be hiring new staff?
Yes, Snack Foods intends to expand and strengthen its team. We are looking to supplement our senior management team and hire new people for the sales team. We will also need to significantly bolster our finance, administration and IT departments.
If you are interested in coming on board, please click here.
Will Snack Foods have a new strategy?
Snack Foods has a number of concrete goals, which it intends to meet in the first 100 days following the acquisition. These plans focus on completing a seamless integration of the businesses. During this period the company will also begin reviewing the business to ensure the correct strategy is in place for the future. The company will spend significant time engaging with its customers and employees to ensure the correct strategy is set.
I have read all of the above. Is there somewhere I can go to provide feedback?
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