Australian alt-meat company Fenn Foods, which recently entered liquidation, has been acquired by local peer Smart Foods.

The deal includes Fenn Foods’ major assets such as the Veef and Love Buds brands, along with plant, stock, and equipment, according to insolvency firm Fort Restructuring. Financial terms of the acquisition were not disclosed.

Smart Foods, based in Gold Coast, will offer roles to up to half of Fenn Foods’ 32 staff.

“While the company has faced recent challenges, I believe in its strong foundation and the dedication of its team,” said Smart Food CEO Raghu Reddy.

“By streamlining operations, fostering key partnerships, and focusing on innovation, we will solidify its position as a leader in the Australian plant-based market.”

Founded in 2015, Fenn Foods was combined with assets owned by another Australian business, All G Foods, last year to create a new entity, The Aussie Plant Based Co. All G Foods, which retained a 49% share in the new business, continued to focus on developing dairy-alternative products.

Ken Whittingham, an advisor at Fort Restructuring, highlighted Fenn Foods’ significance as one of Australia’s largest suppliers of alt-meat products.

“There was a very real risk that consumers could have faced product shortages,” he said.

“With stocks of perishable goods at stake, we needed to move quickly, completing this transaction within seven days of our appointment as liquidators.”

Fort Restructuring also stated that efforts are underway to ensure secured creditors and employee entitlements are paid from the remaining company assets, with Fenn Foods Pty Ltd ceasing to operate as an entity.

Whittingham added that the meat-free and plant-based sector has experienced a boom followed by consolidation in recent years, with Covid shutdowns affecting wholesale and restaurant channels. “It’s not unusual for pioneers in a young and growing sector to face challenges. We’re pleased that through this transaction, the IP and innovation around meat-alternative products developed in Australia won’t be lost,” he said.