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PFL - Patties Foods News Story

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Sector
Consumer Defensives
Size
Small Cap
Market Cap £130.2m
Enterprise Value £163.8m
Revenue £136.4m
Position in Universe th / 1904

Australia's Patties Foods accepts A$231 million takeover offer

Thu 2nd June, 2016 12:13am
SYDNEY, June 2 (Reuters) - Australian packaged food supplier 
Patties Foods Ltd  PFL.AX  said on Thursday it has accepted a 
A$231 million ($167 million) takeover offer from private equity 
group Pacific Equity Partners. 
    Patties said its board has recommended the non-binding and 
conditional cash offer it received on Monday, which was priced 
at A$1.65 a share, a 24-percent premium to Patties' Friday's 
close.  
    The takeover offer included an equity alternative, Patties 
said, which would enable shareholders to retain an indirect 
interest in the business.  
    "Whilst the board remains confident in management's plans 
for growth and innovation in the core brands and the business is 
experiencing strong momentum, the scheme represents an 
attractive value for shareholders," said Patties chairman, Mark 
Smith in a statement. 
    The takeover is expected to be completed in September 2016. 
    Patties, which makes frozen sweet and savoury foods 
including pies, sausage rolls, pastries, crumbles and cakes, 
posted a 12 percent decline in first-half net profit in 
February, largely due to a product recall.  urn:newsml:reuters.com:*:nL4N0XC2HS 
    The company was forced to recall a frozen mixed berries 
product last year amid concerns it had caused an outbreak of 
hepatitis A. Laboratory tests later cleared the berries of 
carrying the disease.  urn:newsml:reuters.com:*:nL3N161154 
 ($1 = 1.3797 Australian dollars) 
 
 (Reporting by Colin Packham; Editing by Richard Pullin) 
 ((colin.packham@thomsonreuters.com; +61-2 9321 8161; Reuters 
Messaging: colin.packham.thomsonreuters.com@reuters.net)) 
 
Keywords: PFL M&A/PEP
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