Join our daily newsletter At The Bell to receive exclusive market insights
- Jatenergy has acquired 70 per cent of Australian Natural Milk Association (ANMA), a Melbourne-based dairy product manufacturer
- ANMA owns and operates a large facility which JAT will utilise to manufacture Neurio goat milk formula and premium lactoferrin ingredient
- Products made at the facility will be exported to major China market
Jatenergy has agreed to acquire 70 per cent of Australian Natural Milk Association (ANMA), a Melbourne-based dairy product manufacturer.
ANMA owns and operates a large manufacturing facility in Melbourne which specialises in making infant formula milk powder and other dairy products. It is one of 15 milk powder manufacturers in Australia approved by China’s Certification and Accreditation Administration (CNCA).
JAT is an Australian-Asia trade specialist who connects Australian companies seeking representation in China, and Chinese distributors seeking Australian products.
The acquisition with ANMA allows JAT to take control of the supply chain of one of its major growing products.
Once the deal is sealed, the company will eliminate the reliance on contract manufacturers for its milk powder products and will increase its profits by capturing the manufacturer’s margin.
“We are delighted to welcome ANMA to JAT. This acquisition accelerates JAT’s strategic plan to insource manufacture of its fast-growing product range and decrease reliance on contract manufacturers,” JAT Managing Director Wilton Yao said.
Until this acquisition, JAT outsourced manufacture of all in-house brands to other companies. While it’s pleased to have experienced a growth in sales and partnerships, it needs to secure a sufficient manufacturing facility to meet its product demand.
JAT has been exercising its dairy products expansion strategy for over a year now. On June 13 2018, it announced the acquisition of 51 per cent of Sunnya, an Australian milk powder and health products exporter. Since this acquisition Sunnya entered agreements with several partners in China to distribute its products across Asia.
JAT helped Sunnya secure these distribution agreements and since then, has continued developing opportunities to expand its presence in the China market.
What also attracted JAT to Sunnya was its May 2019 launch of a premium Neurio goat milk infant formula (containing lactoferrin), targeting Australia and Asia. A large portion of the Chinese population have a cow lactose intolerance, however there is a significantly lower goat milk intolerance.
A further upside to the acquisition is JAT can utilise ANMA’s facility to produce lactoferrin. Lactoferrin is a key ingredient in setting apart JAT from its competitors. It’s an expensive ingredient which will maximise quality of its products and profitability.
Securing ANMA and its massive manufacturing facility will provide JAT with the security to export Neurio goat formula to China.
“We are excited to secure infant formula slots for exporting infant formula and other dairy products to China, and look forward to delivering enhanced returns to investors by lowering costs and manufacturing more rapidly to meet growing demand,” Wilton said.
JAT is pleased to gain access to ANMA’s plant where its products can be produced under its control.
JAT will acquire 70 per cent of the issued capital of ANMA from the current shareholders. The consideration is $14 million, payable by $12 million in cash and, subject to shareholder approval, the issue of JAT shares in the amount of $2 million.
