Cereal and snacks maker Freedom Foods is purchasing competitor Popina with funds from a $65m capital raising as well as the sale of part of its stake in A2 Milk.
AAP reports that the $35m purchase will allow Freedom to expand its manufacturing operations and also build a UHT processing facility in NSW.
Freedom sold part of its 17.8 per cent stake (42.5m shares at $0.74) in A2. The move comes just three months after its joint bid with Dean Foods to acquire the business failed.
"The net proceeds will be invested into income producing assets consistent with Freedom Foods' growth strategy," the company said.