Australian dairy and plant-based food giant Noumi, renowned for its popular Milklab brand, is set to transition to private ownership following a significant A$737 million (US$518 million) acquisition deal with its largest shareholder, Arrovest, an investment vehicle controlled by the influential Perich family. This strategic move comes after a comprehensive year-long review aimed at addressing the company’s substantial debt obligations and marks a pivotal moment for the embattled yet resilient food manufacturer. The transaction, expected to be completed in November, will see Arrovest acquire all outstanding shares in Noumi, effectively delisting it from the Australian Securities Exchange (ASX).
The acquisition by Arrovest, which already holds a commanding 52.5% stake in Noumi, represents a substantial financial undertaking. The total transaction value of A$737 million encompasses both the equity valuation of approximately A$34.2 million (US$23.9 million) – based on an offer of A$0.1234 (US$0.086) per share for the remaining stock – and the full redemption amount for Noumi’s significant debt liabilities, which stand at around A$703 million. A critical component of this debt is a mandatory cash redemption of A$610 million in notes due next May, a looming financial deadline that has significantly influenced the company’s strategic direction. Arrovest has also separately agreed to acquire all listed options in Noumi for A$0.002 each. The decision to proceed with this deal was underpinned by the independent board committee’s assessment that Arrovest’s proposal offered the most credible and executable pathway to address the note maturity and provide a cash outcome for shareholders and optionholders, as no superior alternatives for full debt repayment or refinancing were identified during the extensive review process.
A Tumultuous Journey to Private Ownership: Recovery from Accounting Scandal
Noumi, formerly known as Freedom Foods until its rebranding in 2021, boasts a rich heritage spanning over four decades as a leading Australian producer of both dairy and plant-based milk products. Its portfolio includes well-recognized brands such as Milklab, Australia’s Own, and So Natural, which have garnered considerable market presence in both domestic and international arenas. However, the company’s tenure on the ASX has been far from smooth, marked by a significant accounting scandal that erupted in 2020. This scandal, involving the inflation of accounts through the inclusion of unsellable inventories in 2019 and the first half of 2020, led to a nine-month trading suspension and a drastic restatement of several years of earnings. The fallout was severe, wiping out approximately 90% of the company’s market valuation, equivalent to nearly A$590 million, and triggering mass resignations from its board and executive leadership.
The period following the scandal saw Noumi undergo a significant restructuring, including the divestment of non-core assets, most notably its cereals and snacks division to The Arnott’s Group, a KKR-owned entity. During this critical turnaround phase, the Perich family injected A$126 million into the business, demonstrating their commitment to its survival and future. This capital infusion also led to key leadership changes, with Michael Perich assuming the role of CEO and Genevieve Gregor appointed as Chair, signaling a new chapter under their stewardship.
The repercussions of the accounting irregularities continued to affect the company. In 2024, the Federal Court of Australia ordered Noumi to pay a A$5 million penalty for breaching its continuous disclosure obligations, a stark reminder of the regulatory scrutiny following the scandal. Furthermore, a class-action lawsuit brought by investors, alleging audit failures by financial advisory firm Deloitte, resulted in Deloitte agreeing to pay A$31 million to settle the claims. These legal and financial ramifications underscore the deep impact of the accounting scandal on Noumi’s corporate history and its ongoing efforts to rebuild trust and financial stability.
Milklab’s Resurgence and Forward-Looking Projections
Despite the challenging past, Noumi’s flagship brands, particularly Milklab, have shown remarkable resilience and growth. The company’s strategic review and subsequent acquisition by Arrovest are taking place amidst a period of positive performance indicators for its product lines. For the 2025 financial year, Noumi anticipates delivering an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of between A$61-63 million (US$43-44 million), a notable increase from the A$57.4 million (US$40.2 million) recorded in the previous year. This upward trend is projected to continue into the 2026 financial year.
The plant-based milk segment, while experiencing some recalibration, remains a significant contributor to Noumi’s revenue. For 2025, the company forecasts an adjusted EBITDA of A$42-44 million (US$29-31 million) for this division, a slight decrease from the A$50.3 million (US$35 million) achieved in the prior year. This dip is attributed to increased sales and marketing investments and unrecovered input and distribution costs. Nevertheless, overall revenue for milk alternatives is expected to grow by 2.4% to A$186 million (US$130 million) in the current year.
The Milklab brand, in particular, has experienced robust sales growth across both its plant-based and dairy categories. Sales saw a 5.5% increase, propelled by a substantial nearly 45% surge in plant-based retail sales, a significant 20% rise in oat milk sales, and the successful launch of a reformulated soy milk product. Exports of Noumi’s plant-based milks also demonstrated strong momentum, climbing by 10%. Combined with increased retail demand and expanded contract manufacturing opportunities, these factors helped offset contractions in the hospitality sector, resulting in a more than 3% rise in Milklab’s total Australian revenue.
Looking ahead, Noumi expresses a positive outlook for its long-term future. The company stated, "Overall, Noumi is positive about its long-term future and enters financial year 2027 with a balanced range of opportunities and initiatives positioned to meet macroeconomic challenges." This optimism, coupled with the financial stability and strategic backing provided by the Perich family’s acquisition, suggests a renewed focus on growth and market expansion for Noumi’s popular brands.
Broader Industry Context: Consolidation in the Alternative Protein Sector
Noumi’s acquisition by Arrovest is occurring within a dynamic and increasingly consolidated alternative protein sector. Since September 2024, the industry has witnessed significant M&A activity, with over 80 companies involved in various forms of consolidation, including buyouts, acquisitions, mergers, insolvencies, and shutdowns. In Australia alone, companies like The Aussie Plant-Based Co. and Australian Plant Proteins have been rescued from insolvency, while Proform Foods has ceased operations. This trend highlights the intense competitive landscape and the capital-intensive nature of scaling plant-based food businesses. The acquisition of Made Group, the owner of the vegan yoghurt brand Cocobella, by Danone earlier this year, further underscores the ongoing consolidation within the sector as larger players seek to expand their portfolios and market share. For Noumi, becoming a private entity under the stewardship of a well-resourced family office like Arrovest may provide the necessary stability and strategic focus to navigate these evolving market conditions and capitalize on the growing consumer demand for plant-based and dairy alternatives. The move also signals a potential shift in strategy, away from the public market pressures and towards a more focused, long-term growth trajectory.
