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Maggie Beer Holdings (ASX: MBH) has received a non-binding indicative offer from an unnamed multinational consumer goods company to acquire its Hampers & Gifts Australia (HGA) subsidiary for up to $10 million, a fraction of the $40 million it paid for the business in 2021.
The offer comprises $8 million in upfront cash plus up to $2 million in contingent earn-out consideration over a 12-month period.
The prospective buyer is described only as a "prominent multinational consumer goods business" with existing hampers and gifting operations across the Asia-Pacific region.
Maggie Beer Holdings says the identity of the party is not material information at this stage.
The potential sale price represents a dramatic discount to the $40 million in cash and scrip that Maggie Beer Holdings originally paid to acquire HGA in December 2021.
At the time, the company described the acquisition as a "transformational" deal that would create a "leading Australian food and gifting business".
However, following subsequent impairments since then, the value of the business was listed at $9.9 million on the company's books at the end of FY25.
The non-binding offer follows a strategic review announced in February this year after the company received a number of unsolicited and non-binding approaches regarding HGA.
The board engaged Kidder Williams to run a formal sale process, which generated the current proposal.
"The board is pleased to have secured a proposal to acquire the HGA business as a result of our strategic review process," says Mark Lindh, non-executive chairman of Maggie Beer Holdings.
"The proposal is consistent with our strategy of strengthening our balance sheet and providing optionality to continue to grow our core FMCG business division through both acquisition and organic growth.”
The board intends to recommend shareholder approval of the transaction in the absence of a superior proposal.
HGA delivered first-half FY26 revenue of $34.0 million and EBITDA of $3.1 million, down from $35.8 million and $4.9 million respectively in the prior corresponding period, as the hampers and gifting division battled sector-wide discounting pressures.
The potential transaction explicitly excludes the Maggie Beer Products division, which encompasses the company's core FMCG branded food operations.
A binding sale agreement is expected to be finalised before 31 July 2026, subject to the completion of due diligence, confirmation of funding and other customary conditions.
Shares in Maggie Beer Holdings were trading 14 per cent higher at 7.3c at 10.52am (AEST).
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