Patties Foods has received a takeover proposal from private equity firm Pacific Equity Partners (PEP) that's believed to be worth around $300million.
The company, which makes a number of pie and frozen dessert brands including the frozen berries that were implicated in last year's hepatitis A outbreak, says it is currently in advanced discussions with PEP.
Patties also said that after careful assessment, the Patties board has determined that “engaging further with PEP is in the best interests of shareholders”.
Patties brands include Patties, Herbert Adams, Four 'n Twenty and Nanna's, and Patties recently sold its Creative Gourmet business to Entyce Food Ingredients and announced plans to exit the frozen berry category altogether.
The company's chairman Mark Smith noted, however, that there was no assurance that the proposal would result in any formal offer being made.
“The board remains confident in management's plans for growth in the core brands and the business is experiencing strong momentum,” Smith said.
PEP also owns Manuka Health and Pinnacle Bakery & Integrated Ingredients, and it recently sold Peters Ice Cream to UK ice cream company company R&R.
Patties Foods was founded in 1966, and is Australia's largest pie and pastry manufacturer and the largest supplier of frozen savoury pastry products, according to IBISWorld.
