PAG, an investment firm focused on the Asia-Pacific region, has announced that it has entered into agreements to acquire Patties Foods (“Patties”) and Vesco Foods (“Vesco”), subject to regulatory approvals. Terms of the deals were not disclosed.
Patties, with its origins dating back over 50 years, is known for producing savoury snacks, appetisers, meals and desserts, including its pies, party pies and sausage rolls. Patties’ portfolio of brands includes Four’N Twenty, Patties, Herbert Adams, Boscastle, Nanna’s and Leader.
Vesco, on the other hand, has been a producer of frozen foods for almost 50 years. Its brands cater to a diverse range of consumers and occasions, and include 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.
The acquisition of these two Australian companies is the latest investment by PAG’s Australian-based private equity team in the food and consumer sector, following its investments in Craveable Brands (Red Rooster, Oporto and Chicken Treat) and The Cordina Group (a value-added chicken processor). PAG has also invested in Rex (Regional Express Airlines) and Unispace (office design and fit-out). PAG has an extensive track record of supporting growth for its portfolio companies, having previously acquired The Cheesecake Shop — the largest franchised bakery network in Australia and New Zealand — and expanded the business’ network and footprint across its markets.
Sid Khotkar, managing director and head of PAG Private Equity in Australia and New Zealand, said: “This transaction enhances the strength of our business in Australia and New Zealand. We are excited about this unique opportunity to take some of Australia and New Zealand’s best-loved brands to the next level. Over the past few years, PAG has had the privilege of working with several leading Australian companies, and we are looking forward to putting that expertise to work in support of Patties and Vesco, and helping them provide the highest quality products to consumers across Australia, New Zealand and beyond.”
Paul Hitchcock, CEO of Patties, commented: “PAG’s acquisition of Patties Foods is a clear sign that it believes in our business, people and long-term growth strategy. 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. 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.”
Bernie Pummell, CEO of Vesco, remarked: “This is an exciting development and a significant step forward for Vesco Foods. We are a focused ready-meals manufacturer, with leading brands and a strong track-record of growth and innovation in the category. 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.”