SunRice Expands Pet Food Business with Acquisition of SavourLife

Portrait of a beagle chewing treats. Source: SeventyFour/Shutterstock.com

Diversified Australian company SunRice Group plans to buy local pet food company SavourLife.

Leeton, NSW-based SunRice said it has entered into an agreement to acquire Sydney-based dog food and treat maker SavourLife for A$20.3 million ($13.4 million), with the deal expected to close by Aug. 30.

SavourLife founders Michael and Kimberlee McTeigue, along with all employees, will remain with the company following the transaction.

SunRice already has a presence in the pet food industry through its CopRice branded division, which also supplies feed for pigs, sheep, goats and horses. SavourLife will be part of that business.

CEO Paul Serra, who took over the company last year, said: “This acquisition provides our CopRice business with the opportunity to further expand into the branded companion animal market, where we have seen growing demand for premium products.

“The acquisition will leverage CopRice’s existing manufacturing facilities and supply chain, allowing for increased efficiencies and future growth opportunities.”

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SavourLife generated revenue of A$33.4 million in the year to April 30, 2024 and EBITDA of about A$2.8 million, Sydney-listed SunRice said in a statement. It added that it would fund the acquisition from cash reserves and debt instruments.

Before the deal, SunRice already produced the SavourLife brand of dog food, which includes wet, raw and grain-free varieties. The products are distributed throughout Australia.

Co-founder Michael McTeigue said, “I am pleased that CopRice will be able to help continue to grow SavourLife, which will enhance our ability to fulfill our mission.

“CopRice has been an important partner in building SavourLife into what it is today, and I know that together we will build an even greater company in the future.”

SunRice said it will continue SavourLife’s mission of donating 50% of profits to dog rescue organizations.

The publicly traded company started out supplying rice and rice snacks but has diversified through mergers and acquisitions, including buying Trukai in Papua New Guinea last year and SunFoods in 2016.

The company also owns Riviana Foods, which supplies products such as bread, pickles and soups, as well as the Always Fresh, Toscano, Hart & Soul, Fehlbergs and Bare Bakers brands.

SunRice’s revenue for the 12 months to April 30, 2023 was A$1.6 billion, up 22.8%. EBITDA rose 28% to A$117 million, and net profit rose 12.4% to A$54.8 million. Earnings per share rose 9% to 83.8 cents.

In the new half-year, revenue rose 21.2% to A$918.7 million, while EBITDA rose 48% to A$63.3 million. Profit after tax rose 56.3% to A$30.5 million and earnings per share rose 28.3% to 46.9 cents.