Freedom Foods Group Limited (ASX:FNP) has inked a deal to buy about 7,400 square metres of land adjacent to the Pactum Dairy site in Shepparton Victoria.
The health foods company expects to pay about $4 million for the acquisition which is hoped to facilitate longer term warehousing and distribution requirements for the operation.
Freedom Foods says extra warehouse capacity will allow for future expansion of processing and packaging operations and potential expansion of dairy processing capabilities.
The company plans to start detailed planning for the construction of an integrated warehouse and distribution facility next year and final settlement is to occur in September 2015.
Pactum Dairy Group is a joint venture between Freedom Foods Group and Australian Consolidated Milk.
Freedom Foods Group reported a net profit of $12.1 million in the full 2014 financial year.
