Allens advises PEP on acquisition of Patties Foods

Allens has advised private equity fund manager Pacific Equity Partners (PEP) in relation to the acquisition of ASX-listed Patties Foods Limited (Patties) by Australasian Foods BidCo Pty Limited (BidCo), an entity owned by funds managed or advised by PEP.

BidCo acquired 100 per cent of the share capital in Patties for $1.65 per share, inclusive of a special dividend of $0.25 per share, via a members' scheme of arrangement.

The acquisition involved an innovative unlisted scrip alternative structure under which Patties' shareholders were given the opportunity to elect to receive consideration in the form of cash, scrip in the unlisted PEP holding company of BidCo, or a combination of cash and scrip.

The transaction was implemented on 22 September 2016 following receipt of Court, shareholder and regulatory approvals.

PEP is the largest private equity fund in Australia and New Zealand. PEP Fund V has more than $2 billion equity funds under management. The investment in Patties continues PEP's strong track record in the consumer foods sector in both Australia and New Zealand, having owned and expanded businesses including Peters Ice Cream, Tegel, Pinnacle Bakery, Manuka Health, Griffin's Foods and V energy drinks.

The Allens team was led by M&A partner Tom Story and banking & finance partner Mark Kidston. The team also included banking & finance managing associate Rita Pang, M&A senior associate Anurag Verma, associate James Martin and lawyers Tom Hall and Kevin Ngo.

'We are pleased to have assisted our client PEP on its successful acquisition of this iconic Australian company using an innovative public-to-private transaction structure,' Tom Story said.

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