The parent family of pasta brand San Remo has bought a strategic stake in Maggie Beer Holdings gourmet food business.
According to the Australian Financial Review, an entity associated with San Remo joint CEO Maurice Crotti has taken a 13 per cent stake in Maggie Beer through a $3 million placement.
The capital raising has been priced at 5.6 cents per share, a 10 per cent discount to the 6.2 cent average price in the month to October 20.
Maggie Beer Holdings, founded by the namesake food writer and television presenter in 1979, sells gourmet food products such as jam, chutney, ice-cream and verjuice at Coles, Woolworths and other retailers.
The company reached a market capitalisation of $200 million in 2023 following strong demand during the pandemic, but the valuation has slumped to about $20 million since then. Last year, it reported a loss of $24.3 million.
Management said the company had made “significant progress” in cutting costs over the past months, and that the fundraising would help strengthen its balance sheet. The business sold its wholly owned dairy-producing subsidiary, Paris Creek Farms, to Katoomba Global Foods for $500,000 in June.
The Crotti family found San Remo in 1936 and has grown it into one of the biggest pasta brands in Australia.
The deal comes a week after cordial maker Bickford’s lifted its stake in Maggie Beer to almost 20 per cent.
