Talk about a Tim Tam slam: the Government has just poured another $45 million into Arnott's Biscuits locally via the National Reconstruction Fund as part of a debt refinancing bailout to help the famed bikkie factory survive.

The deal was announced as part of a joint funding arrangement between the National Reconstruction Fund (NRF), new Arnott's corporate overlords KKR as well as Morgan Stanley and MUFG.

It's big bikkies (I'm sorry, the pun fever has taken over me), and will see $45 million of the public purse poured into Arnott's to help it make some of its soon-to-mature debt payments. Arnott's reportedly has $1.75 billion in borrowings that come due in 2026. 

Whatever you call it, the government calls it 'support for advanced manufacturing and export growth' for one of Australia's most beloved brands. But in practice it shores up the balance sheet of one of Australia’s biggest food companies just as its debt pile begins to teeter at the top thanks to new owners.

The now-KKR-owned Arnott’s, which employs about 2500 people across five domestic facilities, has pitched the refinancing as a step toward 'expanding production' and 'lifting exports'. The legendary and nation-definining Tim Tam already has traction overseas, with more than five million packs sold in the UK since April. The boffins at the NRFC see the deal as a chance to push a national icon further into global markets while keeping production lines onshore.

The NRFC says the deal fits within its mandate to invest in value-adding agriculture, one of seven priority areas created by legislation. The fund has now deployed more than $1 billion since late 2024 and this is its third debt transaction. In theory, the backing makes sense: food processing and consumer packaged goods are areas where Australia can compete.

Now I need a cup of tea.