PAG buys Australian cake retailer The Cheesecake Shop
PAG Asia Capital has acquired The Cheesecake Shop, an Australia-based specialist cake retailer with a franchise network of more than 200 stores across Australia, New Zealand and the UK.
Transaction terms were not disclosed, but a source familiar with the deal put the value at approximately A$100 million ($76 million). PAG will work with the existing management team, as well as with existing and new franchisees and suppliers, to expand The Cheesecake Shop’s network.
The company was founded by brothers Warwick and Robert Konopacki in 1991, relying on traditional recipes learned from their Polish mother. They opened a first franchised bakery in Sydney within two years and then built up a presence throughout Australia and New Zealand. They entered the UK and Poland in 1998. An ingredient supply operation, United Network Suppliers, was also set up to serve the franchisee bakeries.
“We are delighted to be buying The Cheesecake Shop and are committed to continuing the success achieved by the founders, Warwick and Robert Konopacki, and the current management, staff, and franchisees,” Weijian Shan, chairman and CEO of PAG, said in a statement.
PAG is an alternative investment manager with in excess of $16 billion under management across private equity, real estate and absolute return strategies. The firm raised $2.5 billion for its debut private equity fund in 2012. It is currently investing its second vehicle, which closed at $3.66 billion at the end of 2015.
Previous activity in Australia includes the purchase – alongside TPG Capital and Ontario Teachers’ Pension Plan – of UGL’s property services arm DTZ, although this is a global business that has since expanded further with the bolt-on acquisitions of Cushman & Wakefield and Cassidy Turley.
The Cheesecake Shop represents PAG’s second announced dessert-themed investment in a week, following a $225 million commitment to dairy and ice cream producer Food Union Group in conjunction with Meridian Capital. The private equity firm will support the company’s growth in China.
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