Does it come with a fixie? Longtable buys a hipster Melbourne dairy for $15.25m
Health & Biotech
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Longtable Group has bought Melbourne hipster creamery St David Dairy for $15.25 million.
The dairy is based in Fitzroy, an inner-city suburb known for fixie bicycles and backyard farms, and sell a range of butter, milk, yoghurt and milk to city cafes.
The deal is split $12.25 million in cash and $3 million in scrip to founder Ben Evans. Half is escrowed for a year and the other half for two years.
Escrow is a period when shares cannot be sold.
Longtable (ASX:LON) is raising $15 million at 70c a share from institutional and professional investors to fund the deal.
Having bought organic-biodynamic dairy producer B.-d Farm Paris Creek when it was still Primary Opinion last year, the latest purchase extends Longtable’s reach into the cafe market.
“This acquisition provides Longtable with a quality beachhead into the Victorian milk market and diversifies our customer base to include a range of Australia’s best restaurants and cafés,” said Longtable managing director Laura McBain.
Longtable has been contacted for comment.
The company’s shares were flat at 74c at the open.