Scales Corporation boosts ownership in Australian joint ventures

Scales Corporation has agreed to acquire additional ownership in its Australian Global Proteins' joint ventures: 50% of Meateor Australia, 50% of Fayman International, and 42.5% of ANZ Exports. These acquisitions, valued at AUD 91.05 million, will result in Meateor Australia and Fayman International becoming 100% owned subsidiaries, and ANZ Exports increasing to 85% ownership. The acquisition price will be settled with AUD 49.4 million in cash, AUD 5.25 million in Scales' shares, and AUD 36.4 million in five equal annual instalments.

The company's managing director, Andy Borland, highlighted the strategic importance of these moves in bringing forward existing options and supporting long-term growth objectives. The Melbourne manufacturing facility of Meateor Australia and the roles of Fayman International and ANZ Exports in the edible proteins sector were specifically noted for their strong performance.

As a result of these investments, Scales' directors have revised their financial guidance for FY25, increasing the underlying net profit after tax attributable to shareholders to between $51.0 million and $56.0 million. Furthermore, the Global Proteins EBITDA target for FY27 has been raised from $70 million to $85 million.