AUSTRALIA | The National Reconstruction Fund Corporation (NRFC) has been helping The Arnott’s Group to add advanced manufacturing capability and create Tim Tam biscuits for export around the world.
The NRFC contributed AUD 45 million in debt to the biscuit manufacturer’s refinancing of AUD 1.75 billion in existing debt that matures in 2026. The transaction is being arranged by KKR Capital Markets, Morgan Stanley and MUFG.
The NRFC’s investment supports The Arnott's Group’s continued investment in manufacturing in Australia as part of the company’s domestic and international growth ambitions.
The refinancing helps secure the future of a market-leading food company founded in 1865 and currently employing over 2,500 Australian workers across five facilities. NRFC is supporting planned future-growth capital expenditures as the company expands production and prepares to take some of its most iconic brands to global markets.
Tim Tam, Australia’s favourite chocolate biscuit, has already built a growing international presence, now stocked in all major British supermarkets and outperforming expectations in the U.K. market, with over 5 million packs sold since its launch in April 2024.
“Arnott’s is a great Australian company, and its products are a source of pride and enjoyment for so many Australians. So many of us have taken a pack of Tim Tam biscuits with us when we set out on travels across the globe. Taking such an iconic brand to international markets is something that is good for Australia and which the NRFC is excited to play a part in," said NRFC CEO David Gall.
“For this great company to thrive into the future, it needs to be positioning itself as a leader in advanced manufacturing in Australia and adapting its production lines to be future-ready. The NRFC is pleased to be part of the refinancing of Arnott’s debt.”
The deal represents the third debt investment made by the NRFC, which is mandated to be active across the entire capital stack from debt to equity. The NRFC has announced 17 investments totalling AUD 1.02 billion since it began investing in late 2024.
“This deal is significant because it is the second we have done in the Priority Area of Value Adding in Agriculture, an important part of the national economy,” said NRFC Chief Investment Officer Mary Manning.
“This is one of the seven Priority Areas our legislation mandates us to invest in and signifies our confidence that value adding in agriculture through processing foods and producing consumer packaged goods is an area where Australia can and should compete with the world.”
More FMCG news here
