PEP acquisition of Patties given go-ahead
Patties Foods has confirmed the acceptance of an acquisition bid for its company by investment group, Pacific Equity Partners (PEP).
Patties Foods owns numerous iconic bakery brands including Four ‘N’ Twenty Pies, Herbert Adams Pies, Snowy River, Chefs Pies, Patties and Nanna’s.
Its board said it would be recommending shareholders accept PEP’s AUD $232 acquisition bid unless a better deal arises before they must vote on a decision in August 2016.
Mark Smith, Chairman of Patties Foods, said “whilst the Board remains confident in management’s plans for growth and innovation in the core brands and the business is experiencing strong momentum, the scheme represents an attractive value for shareholders.”
Patties Foods early last week confirmed it was in talks with PEP regarding an acquisition bid.
The major shareholders of the ASX-listed Patties Foods Ltd include members of the Rajs family. The business was founded by Peter and Annie Rajs, who migrated to Australia from The Netherlands in 1956 and purchased a cake shop in Lakes Entrance in August 1966 called Patties Bakery. This was the name of the former owner’s wife Patty Neat.
The business shifted to a larger factory in near-by Bairnsdale in 1985 and the company acquired a number of Australia’s many iconic brands (such as Four ‘N’ Twenty, Herbert Adams and Nanna’s) from the American multi-national Simplot in 2003.
Patties Foods Ltd was publicly listed on the ASX in 2006, at the time, the four sons of the founding Mr and Mrs Rajs retained a 40 per cent shareholding in the Company.