Australian biscuit manufacturer The Arnott’s Group reportedly signed an agreement to acquire a 75% stake in cereals and snacks manufacturer Diver Foods.

The deal is part of Arnott’s growth strategy to enter new product categories and launch a new business division called Good Food Partners.

The Arnott’s Group CEO George Zoghbi said: “The Arnott’s Group has become the custodian of a 150-plus year legacy of Australian food manufacturing and we have made no secret of our desire to build on that legacy by expanding our operations locally,”

“Diver Foods presents a fantastic strategic growth opportunity for us, with products and capability that will complement our existing brands while helping to diversify our iconic product portfolio and drive our entry into new categories.

“Our intention is to create a new cereal and snacks division that will bring the Diver Foods and Freedom Foods businesses together when the transactions are complete.”

According to the agreement, Diver Foods’ current owner and managing director Chris Diver will retain the remaining 25% stake in the company.

Financial details of the deal have not been disclosed.

Diver said: “Over the last 18 years, Diver Foods has successfully partnered with an array of leading brands and retailers to become one of Australia’s largest cereal and snacking manufacturers.

“We see huge potential for the future and are excited at the prospect of joining with a business like The Arnott’s Group that has similar values and strong Australian heritage. Together, we will remain focused on quality, local ingredients, investing in sustainable supply chains, and partnering with the communities in which we operate.”

Last December, Freedom Foods Group announced the sale of its cereal and snacks assets and liabilities to The Arnott’s Group for A$20m ($15.2m) in cash.

As part of the deal, The Arnott’s Group will acquire cereal and snacks manufacturing facilities in Leeton and Darlington, New South Wales, as well as a facility in Dandenong, Victoria.

The deal also includes brands associated with the business such as Freedom Foods, Messy Monkeys, Heritage Mill, Arnold’s Farm and Barley+.