Patties Foods in acquisition bid by PEP
Patties Foods has announced it is awaiting a proposal for its acquisition by Pacific Equity Partners (PEP).
Patties Foods owns a large number of Australian iconic brands in the bakery products category. These include Four ‘N’ Twenty Pies, Herbert Adams Pies, Snowy River, Chefs Pies, Patties and Nanna’s.
At this stage, it is anticipated PEP will be offering AUD $230 million for 100 per cent of the shares in the publicly-listed Patties Foods Limited.
An ASX announcement, Patties Foods said that after careful consideration, its board had determined to engage further with PEP on the proposal.
Patties Chairman, Mark Smith, said it is possible no formal offer may eventuate.
“The Board remains confident in management’s plans for growth in the core brands and the business is experiencing strong momentum,” Smith said.
The acquisition bid comes just over a year after Patties Foods recalled several of its frozen berry products. The company has however experienced improved growth in its bakery division since, reporting a 2.8 per cent growth in sale revenue for the six months ended 31 December 2015 when compared to the previous 2014 corresponding period. In December 2015, Patties Foods sold its frozen berries business to Entyce Food Ingredients.