Just two months after Perth, Australia-based researcher, developer, producer, and marketer of environmentally friendly flooring, Style Limited, entered the agribusiness space with the $20 million purchase of Norwest Seafood, Western Australia-based Craig Mostyn Group (CMG) announced it has sold its food service division to Style Limited for $3 million in cash and approximately $4 million in shares.

 

CMG’s food services division accounts for a small portion of the group, importing and distributing frozen seafood and potato products across Australia.

 

CMG’s chief executive officer, David Lock stated that CMG’s business strategy is to gain supply chain integration, which it failed to achieve with its food services division, prompting the company to divest.

 

Style Limited has reportedly been eyeing CMG’s food division for a while, and for them, the deal provides a clean vertical integration. “When we bought Norwest Seafoods we had this in our vision,” said Peter Hutchinson, chairman of Style Limited.

 

“Because Style already owns Norwest Seafoods this brings a national sales team to a business that already has 1,000 tons of prawn product per annum, as well as all of our own products that our food service business traditionally did, so in Style’s hands it’s a very neat vertically integrated business,” said Lock.

 

Completion of this deal, which brings with it an experienced sales team, supply chain, and multiple markets across Australia, was also key to Style Limited’s planned listing on the Australian Stock Exchange which is scheduled to occur in November according to Mr. Hutchinson.