PURE Foods Tasmania has acquired Tasmania's Daly Potato Company Pty Ltd for $1.8 million.
In an announcement to the Australian Securities Exchange, the company said shares worth $1.4 million would be placed in a trust over three stages to be released annually.
Pure Foods will take on $300,000 of the Daly Potato Company's debt and would pay the Daly family $100,000 upon settlement of the deal.
The Daly Potato Company was started by Gerard and Susie Daly in 2016 to value-add to their South-East potato farm and find an alternative use for potatoes that didn't meet shape or size expectations of consumers.
Their potato salads can be found in Coles and Woolworths.
The company's full-year sales were $211,000 in 2017.
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This grew to $2 million in 2019-20.
The company is scheduled to launch a number of new products this financial year.
Pure Foods Tasmania managing director Michael Cooper said meal solutions was a $1 billion market in Australia.
"We also see a large opportunity to support our Asian customers with unique 100 per cent Tasmanian-based meal solutions and Daly current products," he said.
Michael Cooper said meal solutions was a $1 billion market in Australia.
"We also see a large opportunity to support our Asian customers with unique 100 per cent Tasmanian-based meal solutions and Daly current products," he said.
Pure Foods has previously acquired two other Tasmanian companies: Tas Pate and smoked salmon and trout business Woodbridge Smokehouse.
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Political reporter for Australian Community Media, based in Hobart.
Political reporter for Australian Community Media, based in Hobart.
