Arnott’s Group secures $45m government fund for global Tim Tam expansion
The company behind Australia’s iconic Tim Tam has secured a $45 million government investment to strengthen its manufacturing capabilities to help the sweet treat dominate the global market.
The National Reconstruction Fund Corporation (NRFC), Australia’s dominant investor in manufacturing capacity, announced on Monday it would contribute to the big figure as part of Arnott’s Group’s $1.75 billion debt refinancing.
The existing debt matures in 2026 and the transaction is arranged by KKR Capital Markets, Morgan Stanley and MUFG.
“NRFC supports planned future growth capital expenditures as the company expands production and prepares to bring some of its most iconic brands to the global market,” the fund said in a statement.
“The refinancing helps secure the future of a market-leading food company that dates back to 1865 and now employs more than 2,500 Australian workers across five sites.”
Chief executive David Gall said many people had fond memories of Tim Tams during trips around the world.
“Taking such an iconic brand into international markets is a good thing for Australia and something the NRFC is excited to play a part in,” he said.
The Australian chocolate biscuit has gained an international presence, being stocked in all major UK supermarkets and outperforming sales expectations.
More than 5 million packs have been sold since its launch in April 2024.
Although Tim Tams are an iconic representation of Australia, The Arnott’s Group is not Australian-owned.
It was acquired from US-owned Campbell’s Soup by private equity firm KKR in 2019.
Arnott’s was first sold to Campbell’s Soup in 1997.
“For this great company to be successful in the future, it needs to position itself as a leader in advanced manufacturing in Australia and adapt its production lines to be future-ready,” an NRFC spokesperson said.
The deal represents the third debt investment by NRFC, which is required to be active across its entire capital stack, from debt to equity. NRFC has announced 17 investments totaling $1.02 billion since it began investing in late 2024.
