Primary Opinion raises $43m to go full foodie; shares jump 31pc

Tech play turned foodie Primary Opinion has raised $43 million and will change its name to LongTable as it doubles down on food acquisitions.

Primary Opinion (ASX:POP), which already owns 48 per cent stake of Maggie Beer , will issue 1.43 billion shares at 3c each to buy oddly-named organic and biodynamic dairy operation, B.-d Farm Paris Creek.

Primary — which is lead by former Bellamy’s boss Laura McBain — jumped 31 per cent to 4.2c, up from lows of 1.2c in April. Primary is valued at $28 million.

Based in the Adelaide Hills, Paris Creek Farm uses milk from nine local suppliers to make premium biodynamic and organic dairy products such as milk and cheese that it sells under its B.-D Paris Creek Farm brand.

They control as much as 20 per cent of Australia’s organic raw milk supply — and are the second biggest supplier.

Founders Ulii and Helmut Spranz — who started the operation in 1987 and will join the Primary board — are selling up for $30.5 million in cash and $3.5 million in POP shares.

POP will also repay $7.8 million in debt and use the rest of the money raised for working capital and further investments.

Ms McBain said the farm had potential to become a “formidable Australian success story.

“It has a world class manufacturing facility that has recently had more than $8 million invested to increase its capacity, it has a solid supply chain with access to a growing pool of organic milk and its products are in high demand,” she said.

At the group’s upcoming AGM, shareholders will vote on a name change to LongTable Group which is said to better reflect Primary’s ambitions and future direction to invest in premium food and beverage businesses.