Australian private equity firm Pacific Equity Partners has acquired ASX-listed food manufacturing company Patties Foods for A$232 million ($168 million; €151 million), according to a board announcement from the company.
PEP offered cash payment of A$1.65 per share to acquire 100 percent of Patties, which would include an equity alternative to enable shareholders to retain an indirect interest in the business.
The investment came from its Pacific Equity Partners V, the firm’s fifth flagship fund which closed on its hard-cap of A$2.1 billion in September 2015. Among Fund V’s investments are Kiwi honey Manuka Health, food manufacturing company Pinnacle Foods and Auckland-based private education company Academic Colleges Group.
The firm has been active in the food industry over the last 15 years, having invested in New Zealand snack foods business Griffin’s Foods, ice cream company Peters Food Group and poultry producer Tegel Foods.
Victoria-based Patties Foods produces frozen savoury and dessert products and is known mainly for its Four'N Twenty and Herbert Adams-branded pies. It was hurt by a food safety scare last year after its frozen berries were linked to 31 cases of Hepatitis A, although laboratory tests have later cleared the products of carrying the disease. In December 2015, the company sold its frozen berries business to Entyce Food Ingredients.
PEP manages over A$4 billion of assets and has returned A$ 6.4 billion to its investors over the last three years.
The takeover is expected to be completed in September 2016.
PEP could not be reached for comment.