Japan's Nisshin Seifun to buy Australia's Allied Mills in overseas expansion drive
27/02/2019 07:47
TOKYO, Feb 27 (Reuters) - Japanese flour maker Nisshin
Seifun 2002.T said on Tuesday it would buy Australia's Allied
Mills from private equity firm Pacific Equity Partners for A$574
million ($412 million), in its latest step overseas to offset a
shrinking local market.
Nisshin, which is best known in Japan for its flour, cake
mix and spaghetti, said it will buy the Australian firm as part
of a push to increase its overseas flour businesses, having
acquired a firm in the United States and New Zealand in 2012 and
2013, respectively, and a Thai business last year.
Saddled with an ageing population at home, Japanese
retailers and food companies have made a drive for overseas
markets, particularly in emerging countries. Allied Pinnacle has
a leading position in Australia's flour market, Nisshin Seifun
said in a statement.
Nisshin would buy the entire 98.9 percent stake in the
company held by Pacific Equity Partners, it added.
($1 = 1.3930 Australian dollars)
(Reporting by David Dolan; Editing by Rashmi Aich)
((david.dolan@tr.com; +81 3 6441 1526; Reuters Messaging:
david.dolan.thomsonreuters.com@reuters.net))