SYDNEY: The SunRice Group has entered into an agreement to acquire 100% of SavourLife for A$20.3 million.

SavourLife will be integrated into the SunRice Group’s CopRice business, in line with its strategic objective to further expand into the branded companion animal market.

The acquisition will utilise CopRice’s existing manufacturing and nutrition capabilities, to help accelerate the growth of SavourLife while continuing to deliver on its social mission.

SavourLife is expected to be accretive to CopRice’s EBITDA contribution to the
SunRice Group in FY25.

This investment demonstrates the SunRice Group’s ongoing execution against its strategy to move into branded products.

Commenting on the acquisition, SunRice Group CEO, Paul Serra said:
“This acquisition positions our CopRice business to further expand into the branded companion animal market, where we’ve seen growing demand for premium products. We believe that SavourLife is well positioned to continue to grow in Australia, with Australia having one of the highest dog ownership rates in the world.

SavourLife will also complement
CopRice’s existing products, which are known for their quality ingredients.

CopRice already manufactures SavourLife’s dog food range. The acquisition will use
CopRice’s existing manufacturing facilities and supply chain to improve efficiencies and provide future growth opportunities. We look forward to working with Michael McTeigue, SavourLife’s Founder and the SavourLife team to continue to deliver on SavourLife’s mission of making a difference and continuing to support dog rescue groups.”

SavourLife’s Founder, Michael McTeigue said:
“I am excited by the opportunity for CopRice to help continue to grow the SavourLife business, which will expand our ability to deliver on our mission.

CopRice has been an important partner in building SavourLife into the business it is today, and I know that together we will build an even greater business into the future.”

Michael McTeigue will continue in his role with SavourLife, alongside Co-founder Kimberlee
McTeigue and all other SavourLife employees who will remain in the business.

The SunRice Group will acquire 100% of the shares in SavourLife Pty Ltd and SavourLife IP Pty Ltd and 100% of the units in the SavourLife IP Unit Trust for a purchase price of A$20.3 million.

SavourLife had revenue of $33.4 million and normalised EBITDA of circa $2.8 million in the year to April 30, 2024.

As an existing manufacturer for SavourLife, only incremental revenues will be recognised by CopRice going forward.

SavourLife is expected to be accretive to CopRice’s EBITDA contribution to the SunRice Group in FY25.

The Sydney-based business has a national presence with its Australian made products available across all regions of Australia, from major cities to regional areas.

Completion of the transaction is expected to occur by 30 August 2024, pending satisfaction of a number of standard conditions precedent. The purchase price will be funded from existing cash
reserves and available debt facilities.