CPE sells Australia biscuit business to Mondelez
Australian mid-market private equity firm CPE Capital has agreed to sell Gourmet Food Holdings (GFH) – a local producer of crackers and biscuits – to US-based food multinational Mondelēz International.
The size of the transaction was not disclosed. The Australian Financial Review reported that the deal was worth more than A$400 million ($315 million). CPE, previously known as CHAMP Private Equity, formed GFH in 2018 through the acquisition of MaxFoods and Fine Food Holdings. The investment came from its fourth fund, which closed at A$735 million in 2017.
Melbourne-based GFH claims to be one of Australia’s fastest-growing food businesses. It owns cracker brands include OB finest, Olina’s Bakehouse and Crispbic, as well as the Gullón range of sugar-free sweet biscuits. MaxFoods entered the packaged seafood business in 2009 and established Ocean Blue as a market leader within five years. It primarily supplies salmon and trout.
“This is a great strategic asset for us in a very important market,” said Dirk Van de Put, chairman and CEO of Mondelēz, in a statement. “With our iconic biscuit brands such as Oreo and belVita, as well as our leadership in chocolate with Cadbury, this acquisition will accelerate our broader snacking leadership in Australia and New Zealand.”
Todd Wilson, co-founder of MaxFoods and Fine Food Holdings, and CEO of GFH, will remain with the business in an advisory capacity. Oliver Flint, currently COO, has been named managing director. Mondelēz will leverage its manufacturing and R&D capabilities to help GFH accelerate its growth. The transaction is expected to close in April.
US-listed Mondelēz, which generated revenues of $27 billion in 2020, owns a string of well-known biscuit, chocolate, and confectionery brands. In addition to Oreo, belVita and Cadbury, the portfolio includes Chips Ahoy, Ritz, Sour Patch Kids, Milka, Côte d'Or, Toblerone, Green & Black's, Marabou, and Jell-O.
CPE was established in 1987 and has since made 75 platform investments across eight funds, deploying A$3.8 billion. Recent activity includes leading a consortium that has offered A$2.28 billion for Bingo Industries, an Australia-based waste management and recycling company. CPE is currently in the market with its fifth buyout fund, targeting A$800-900 million.
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