SYDNEY, AUSTRALIA: In a strategic move aimed at streamlining its business operations and optimizing its portfolio, Halo Food Co. Limited (ASX:HLF) has announced the divestment of The Healthy Mummy Holdings and its associated subsidiaries.
The Company’s decision aligns with its ongoing strategic review, which was prompted by recent market challenges and a desire to enhance its core offerings.
The divestment sees 100% of The Healthy Mummy’s share capital transferred to Hairmop Pty Limited, the parent company of Mosh, a leading men’s healthcare platform in Australia.
The transaction, marking a significant development in the health and wellness sector, was both signed and completed on Thursday, August 10, 2023, immediately after the close of the market. Under the terms of the agreement, Hairmop Pty Limited has acquired the entire share capital of The Healthy Mummy entities for a purchase price of $588,540. This amount also serves as a settlement for the intercompany debt owed to Halo Manufacturing.
One of the standout elements of the deal is the seamless transition of all liabilities of The Healthy Mummy to Mosh. Moreover, the acquisition ensures the continuity of The Healthy Mummy’s workforce, with all employees retaining their positions within the newly transferred entities.
This strategic divestment decision is part of Halo’s broader plan to optimize its operations and refocus its core business activities. The Company had previously recorded an impairment of $11.3 million related to The Healthy Mummy acquisition in its 2023 Financial Year results, citing challenges in e-commerce and digital business as the driving factors behind the decision.
Mosh, recognized as the foremost men’s healthcare platform in Australia, has also entered the female health and wellness segment with the launch of its brand, Moshy. This expansion is expected to complement its existing offerings and bring about new synergies as it takes on The Healthy Mummy’s portfolio.
To underscore their commitment to collaboration, Halo and Mosh have concurrently established an arms-length and exclusive manufacturing agreement. This partnership will see Mosh assume responsibility for producing The Healthy Mummy’s range of powders, including popular items like smoothies and weight loss shakes. The manufacturing agreement is set to span an initial period of 18 months.
Halo Food Co.’s divestment of The Healthy Mummy Holdings marks a significant chapter in the company’s evolution, one that underscores its commitment to strategic realignment and the cultivation of strategic partnerships in the health and wellness sector. As both companies move forward, the industry will be watching closely to see how this collaboration shapes the future of health-focused products and services.
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