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Nourish Foods, a fast-growing children’s snack-food company that was forced into voluntary administration last month, is set for a new lease of life after being sold to Tempo Group.
The sale, negotiated by receivers John McInerney and Matt Byrnes of Grant Thornton, follows an expressions of interest campaign launched three weeks ago to find a buyer for the business and its assets.
Founded as Whole Kids in 2005 by Monica and James Meldrum, the Melbourne-based Nourish Foods produces health food products under the Nourish Foods, Whole Kids, Offbeat Snacks and Just Add brands.
Despite expectations of revenue doubling to $12 million in FY24, the company hit the wall last month in the wake of feeling out a potential $2 million crowdfunding campaign mid-year.
The company, which has distribution deals for its products with Woolworths, Coles, IGA supermarkets and Chemist Warehouse, buckled due to a lack of cash after launching its new brands Just Add and Offbeat earlier this year.
The founders appointed Mark Everingham and Tim Heesh of TPH Advisory as voluntary administrators earlier this month, but the receivers from Grant Thornton were subsequently appointed on 13 September to oversee the sale of assets.
“We are pleased to advise that on 5 October 2023 the business of Nourish, associated brands and related IP were sold to Tempo Group of Companies, who is the new owner and operator of the Nourish brand and its business,” says a Grant Thornton spokesperson.
“As receivers and managers, we are pleased to have been able to support the brand through to a positive outcome and find a suitable buyer who is motivated to see the brand continue.”
While the sale price to Sydney-based Tempo Group has not been disclosed, Nourish Foods will join a stable of varied assets that include consumer electronics and home appliances.
The acquisition will boost to four the number of food brands in Tempo’s portfolio, which also included the Paramount tinned salmon brand, Brunswick tinned sardines and Tripsas Olive Company.
Tempo acquired Paramount and Brunswick in 2021 from Freedom Foods and at the time the company said it was keen to grow its food and beverage division.
The company, founded and led by the Stergiotis family, has offices in the UK, US, Germany, China and Hong Kong, with its head office based in Sydney.
Monica Meldrum, the CEO of Nourish Foods, last month expressed her ‘heartbreak’ at having to call in administrators to the company after 18 years building a company with a mission of nurturing 'healthy kids and a healthy world'.
However, she had hoped Nourish would be placed ‘in the best possible hands so that it’s legacy can continue, the business can realise the significant opportunities that we have secured and Nourish can go on to reach its full potential and everything we know it is capable of’.
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