Foreign investors snap up Four’N Twenty, Lean Cuisine in mega deal
Four’N Twenty is one of the most famous brands included in the mega deal. Photo: Facebook/Four'N Twenty Pies
Some of Australia’s best-known freezer brands have been sold to foreign ownership in a deal worth as much as $700 million.
Asian private equity firm PAG has snapped up Patties Foods, the owner of leading brands such as Four’N Twenty, Patties, Herbert Adams, and ready-meal manufacturer Vesco Foods.
The terms of the deal, including the price, have not been disclosed. The Australian Financial Review reports the combined business is expected to be worth about $550 million, while DealStreetAsia put it as high as $700 million.
The agreement remains subject to regulatory approval.
Patties has sold pies, sausage rolls, desserts and other frozen snacks across Australia for the past 50 years. Chief executive Paul Hitchcock said the acquisition was a clear sign that Hong Kong-based PAG believed in the company.
“It is recognition of our reputation as a highly respected food manufacturer in Australia and New Zealand with a long list of loved food brands,” he said.
“The acquisition presents a significant opportunity for Patties Foods, unlocking further investment into market leading innovation, well-known brands and manufacturing capabilities. We also very much look forward to working with the Vesco team post completion to best serve our customers.”
Other brands included in the sale are Boscastle, Nanna’s and Leader, as well as Vesco’s On the Menu, Super Nature, Lean Cuisine, Annabel Karmel and Jarraballi.
Vesco also provides commercial food services under the 7 Star, Clever Cuisine, and Enrico’s brands.
Vesco boss Bernie Pummell said it was “an exciting development and a significant step forward” for the company.
“PAG is well placed to support Vesco and its partners in the future, not only to build on Vesco’s success to date, but also to enable new exciting opportunities through the combination of Patties and Vesco,” he said.
PAG’s Australian and New Zealand managing director Sid Khotkar said the transaction enhanced the strength of the investment firms business in both countries.
In Australia, PAG also has stakes in Craveable Brands (Red Rooster, Oporto and Chicken Treat) and chicken-processor The Cordina Group. It also owns The Cheesecake Shop, which it said was the largest franchised bakery network in Australia and New Zealand
Outside food, PAG has also invested in regional airline Rex and office design and fit-out business Unispace.
