Australia: Patties Foods receives takeover bid from Pacific Equity Partners

Investment firm Pacific Equity Partners has offered A$232million ($165 million) for 100% of the shares in Patties Foods, according to reports in AFN and ABC.

Australia-based Patties Foods is the owner of a number of brands in the bakery industry, including Four ‘n’ Twenty Pies, Herbert Adams Pies, Snowy River, Pies Chefs, Patties and Nanna’s.

According to sources, Patties revealed that Pacific Equity Partners (PEP) has approached the company with an offer of A$1.65 ($1.21) per share, valuing Patties at $231.8 million ($165 million).

Directors at Patties Foods are recommending the deal, urging the shareholders to vote in favour of the takeover. “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”, said Patties Foods chairman Mark Smith.

Shareholders will vote on the deal at a meeting in late August.

Source: AFN / ABC