Elixinol Wellness is looking to merge with The Sustainable Nutrition Group (TSN), giving it access to a fully integrated hemp growing network in Australia.
TSN is an ASX-listed company which produces, manufactures, and distributes a range of sustainable and plant-based nutrition brands, including hemp products, under the Mt Elephant, Australian Primary Hemp, Field Day and The Australian Superfood Co brands in Australia.
Also ASX-listed, Elixinol Wellness Limited is a global leader in the hemp industry, marketing and selling hemp and other plant-derived nutraceutical, food and topical products. It is owner of Hemp Foods Australia.
The merge will increase Elixinol’s distribution points from 2,300 to 4,100 locations, and also provide access to the largest hemp farmer network in Australia – a significant benefit given the Australian consumer’s growing interest in supporting business that source locally.
Elixinol Wellness’ global chief executive officer, Ron Dufficy, said “We are particularly excited about the scale that we will achieve with this transaction. Increasing the size and scale of both businesses enables access to economies of scale and provides cost efficiencies to support the delivery of our profitability goals.
“The combined group will benefit from potential annualised cost savings of up to $4.3 million, including potential savings identified from the strategic reviews undertaken by both companies, plus new transaction potential synergies of up
to $2.3 million, representing total potential savings of up to $6.6 million.”
Once the merge is completed, TSN shareholders will hold 30 percent of the merged group and Elixinol Wellness shareholders will hold 70 percent.
Listen to our podcast episode with Felipe Favaro, CEO of Hemp Foods Australia, below.