Australia based private equity investment firm Pacific Equity Partners (PEP) has agreed to acquire Kerry Pinnacle, the Australian subsidiary of British baked goods firm Kerry Group.
Reuters reported citing a person with knowledge of the matter that the acquisition is expected to be worth up to A$250m ($192.75m).
According to the source, this new development would be the first in the food sector for PEP's fifth fund. The buyout firm, which has $6bn in equity funds under management, has raised A$1.5bn out of the A$2bn slated for the fund.
Kerry Group earlier announced that it was in advanced talks for the sale of its subsidiary, The Australian Business Review said.
The investment company is active in Australia's foods space, where it is already involved in the purchase and sale of businesses such as poultry business Tegel Foods, Peters Ice Cream and snack foods business Griffin's Foods.
Kerry Pinnacle currently offers baked goods like muffins, cakes, donuts and profiteroles, and frozen baked goods, ingredients as well as fillings. In 2014, the food company reported annual sales of A$225m.
Image: Pinnacle offers bakery ingredients and frozen specialty products to 3,500 supermarket and bakery customers.Photo: courtesy of piyato/ freedigitalphotos.net.
