Port owner PAG Asia Capital is ready to munch on Patties Foods

Australasian Foods HoldCo Pty Ltd, the entity created to acquire and own Patties Foods in 2016, reported $436 million in revenue and an operating profit of $5.6 million in the year to June 2021. It has yet to file accounts for the fiscal year. 2022. The company had $558.5 million in assets as of June 2021 and net assets of $145.5 million.

PEP bought Patties Foods off the ASX boards in September 2016, when the company was earning about $245 million in annual revenue and $20 million in pre-tax profit. Funds managed by PEP are understood to hold around 75 percent of the capital, while the founding Rijs family holds most of the rest.

Should PEP and Craveable Brands strike a deal, the Australian buyout firm is expected to post a healthy if not stellar profit.

PEP paid around $230 million or 9.5 times final EBITDA for the business and made a handful of complementary acquisitions, including Leader Foods in New Zealand. It sold the Patties Foods properties in Bairnsdale and Packenham in 2021 for $141 million, under a 30-year sale-leaseback agreement.

Shannon Wolfers of PEP has been responsible for the investment. Sources said PEP was expecting more than $500 million for the deal, but it would likely sell for much less.

It hired Goldman Sachs to introduce the company to potential buyers late last year, as revealed by Street Talk.

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