PEP, CHAMP win approval for New Zealand acquisitions

The approvals were disclosed by New Zealand’s Overseas Investment Office. Transaction values were not disclosed, but for deals that do not involve potentially sensitive transfer of land ownership, the regulator only gets involved when the assets are worth more than NZ$100 million ($70 million).

The Leader Products acquisition, which was reported by local media last November, is structured as a bolt-on by Patties Foods, which is best known for the Four’n Twenty meat pie brand and the Nanna’s line of frozen desserts. PEP bought the company last year through a privatization worth around A$230 million ($166 million).

Founded in 1998, Leader produces frozen convenience foods including burgers, schnitzels and finger foods under the Leader, Tony’s Tucka and Kauri Coast brands. It is a major supplier to Subway in the region and also works with grocery stores, cafes and caterers. Patties sees the deal as complementary to its existing business and will leverage its customer relationships and distribution networks to sell Leader’s products.

This represents PEP’s second bolt-on acquisition in the food space this year, following an agreement to purchase Australian flour producer Allied Mills for A$455 million. The plan is to integrate the business with Pinnacle, a baked goods manufacturer PEP bought in 2015, to build an integrated market leader across frozen specialty baking, in-store baking and bakery ingredients. The GP is also reported to have agreed a deal for Australian Wholefoods.

Meanwhile, the assets CHAMP has bought from transport industry pioneer James Barker, who began the sale process prior to his death last year, comprise an integrated nationwide transport chain covering road, shipping and freight forwarding. They include the Strait Shipping-owned Bluebridge ferry service, which operates two ferries in the Cook Strait.

The private equity firm is making the acquisition through its fourth fund which launched in 2015 with a target of about A$1 billion and reached a first close of A$500 million early last year.

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• Topics
• Buyouts
• Consumer
• Infrastructure
• Australasia
• New Zealand
• Pacific Equity Partners
• CHAMP Private Equity
• Logistics