Australian GPs sell food businesses to PAG

The size of the transaction was not disclosed, but the Australian Financial Review put the value of the combined businesses at AUD 550m (USD 372m), adding that it represents PAG’s largest investment in Australia to date.

The private equity firm has existing exposure to food services in the country through Craveable Brands, a quick service restaurant chain operator acquired from Archer Capital in 2019. It is also present in the upstream food processing space, having bought poultry producer The Cordina Group for AUD 300m earlier this year.

Patties, which was founded over 50 years ago, is best known for its pies through brands such as Four’N Twenty, Herbert Adams, Boscastle, and Nanna’s. It also produces sausage rolls, savoury snacks, and various appetisers, meals, and desserts.

PEP took the company private in 2016 at a valuation of AUD 230m. It has supported cross-border and product line expansion, in part through bolt-on acquisitions. For example, in 2017, Patties assumed control of Leader Products, a New Zealand-based producer of frozen convenience foods.

Catalyst, which is in wind down mode, having ceased raising new capital several years ago, took ownership of Vesco in 2013, enabling CHAMP Ventures to make an exit. It was a simultaneous acquisition and merger, with the addition of Cook Freeze to the platform.

Founded in 1974, the company produces frozen foods through brands such as On the Menu, Super Nature, Lean Cuisine, Annabel Karmel, and Jarraballi. It also offers commercial food services under the 7 Star, Clever Cuisine, and Enrico’s brands. Products are sold in Japan, South Korea and Singapore, as well as Australia.

“This transaction enhances the strength of our business in Australia and New Zealand,” said Sid Khotkar, head of Australia and New Zealand private equity at PAG. “We are excited about this unique opportunity to take some of Australia and New Zealand’s best-loved brands to the next level.”

PAG’s other investments in Australia include airline Rex and office design business Unispace. It previously owned The Cheesecake Shop, a specialist cake retail franchise, which was sold to local investment firm River Capital earlier this year.

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• Topics
• Australasia
• Consumer
• Buyouts
• Trade sale
• Australia
• New Zealand
• PAG
• Pacific Equity Partners
• Catalyst Investment Managers