International private equity firm, PAG, has bought two of Australia’s leading value-added food companies, Patties Foods and Vesco Foods.
The acquisition is the firm’s latest investment in the food and consumer sector, following its recent stake in Craveable Brands and The Cordina Group.
DealStreetAsia reports the two deals were worth $700 million.
Known for its savoury pies and snacks, Patties also holds a portfolio of food brands, including Four’N Twenty, Patties, Boscastle, Herbert Adams, and Nanna’s and Leader.
“The acquisition presents a significant opportunity for Patties Foods, unlocking further investment into market-leading innovation, well-known brands and manufacturing capabilities,” said Paul Hitchcock, CEO, Patties.
“We also look forward to working with the Vesco team post completion to serve our customers best.”
Vesco Foods offer a brand roster of ready-made meals, including Lean Cuisine, Super Nature, On the Menu, Annabel Karmel, and 7 Star.
Bernie Pummel, CEO of Vesco, described the deal as an exciting and 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.”
The recent acquisition would see the firm become a major player in the frozen food aisle in supermarkets, which will now offer a range of products from savoury snacks to desserts.
“This transaction enhances the strength of our business in Australia and New Zealand, said Sid Khotkar, MD and head of PAG private equity in Australia and New Zealand. Hong Kong-headquartered PAG is backed by Blackstone.
“We are excited about this unique opportunity to take some of Australia and New Zealand’s best-loved brands to the next level and help them provide the highest quality products to consumers across Australia, New Zealand and beyond.”
