After toying with a potential merger, Pure Foods Tasmania will pay $1.8 million to buy the farmer-owned Daly Potato Company in a cash and shares deal.
DPC was founded by Gerard and Susie Daly who have grown potatoes at Marion Bay on Tasmania's South East Coast for 30 years.
In 2016 they branched into making potato salads, then gin and vodka to value-add their second grade crops.
Sales via Coles, Woolworths and Metcash topped $2m in 2019-20, reflecting compound annual growth of 115 per cent since 2016-17
Pure Foods will issue 2.28m shares at 61 cents each, worth a total $1.4m over three annual stages and take on about $300,000 in debt, also paying the Daly family $100,000 when the deal settles in October.
Mrs Daly will remain working with the business for three years and the couple have agreed to a five year potato supply contract.
Pure Foods Tasmania managing director Michael Cooper said meal solutions was a $1 billion market in Australia and large opportunities existed with Asian customers, too.
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