March 9, 2015
Although 2014 was a record breaking year for private equity exits in Australia, buyout firms are under pressure as purchase prices are being driven up by cheap debt and initial public offerings appear more risky in the face of volatility. But because of demand from Asian markets, the food sector has been insulated from most of these mitigating factors.
The Australian buyout firm, Pacific Equity Partners (PEP) has announced that it is to buy Kerry Pinnacle, the local arm of the British bakery goods business, Kerry Group Plc for A$250 million (US$193 million). Kerry Pinnacle supplies 3,500 supermarkets and bakery customers with muffins, cakes, donuts, profiteroles, frozen baked goods, ingredients and fillings.
Last year PEP doubled its money in two years with its exit from Peter’s Ice Cream, selling it to British dairy business R&R Ice Cream Plc for A$450 million (US$347 million), and doubled its money in eight years after selling New Zealand snacks company, Griffin’s Food Ltd to Philippines-based Universal Robina Corp. for NZ$700 (US$515.6 million).
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