Patties Foods has confirmed it is currently in “advanced discussions” with Private Equity Partners (PEP), after receiving a non-binding takeover proposal from the private equity firm.
Patties Foods, owner of Four’N Twenty, Herbert Adam’s and Nanna’s, confirmed it had received a non-binding, conditional and incomplete proposal from PEP, with it offering to pay $1.65 in cash for each Patties Foods share.
Patties Foods chairman, Mark Smith, said discussions are ongoing, and as such, there can be no assurance that the proposal will result in any formal offer being made to Patties’ shareholders.
“The board remains confident in management’s plan for growth in the core brands and the business is experiencing strong momentum,” Mr Smith said.
Patties Foods currently holds 28.3 per cent of the hot savoury market within P&C, with Four’N Twenty accounting for 25.6 per cent.
Patties Foods’ total combined market share of P&C, including Patties brands and customer brands produced by Patties, currently sits at 58.6 per cent.