The Australian brands behind Four’N Twenty pies, Nanna’s baked goods, and Lean Cuisine ready meals have been sold to Hong Kong-based investment firm PAG, marking the latest round of local household names to come under foreign ownership.
PAG revealed the news on Thursday, declaring its intention to acquire Patties Foods, one of Australia’s largest food manufacturing companies, and Vesco Foods, subject to regulatory approval.
The Sydney Morning Herald reports the deal will cost PAG in the vicinity of $500 million.
In parting with that cash, PAG will welcome those food manufacturers to its growing stable of Australian investments, including Craveable Brands, the company behind Red Rooster and Oporto, and Regional Express Airlines (Rex).
While Patties Foods already has a presence in some overseas markets, its new owners say they intend to expand the pie-makers global footprint.
“We are excited about this unique opportunity to take some of Australia and New Zealand’s best-loved brands to the next level,” said Sid Khotkar, PAG’s managing director and head of private equity in Australia and New Zealand.
Patties Foods is more than 50 years old, and helped drive labels like Four’N Twenty into Australian folklore.
Pacific Equity Partners, which acquired the company in 2016, says it now generates annual net sales in excess of $200 million.
The deal represents the latest in a long string of foreign acquisitions of folk-favourite Australian brands.
Legendary swimwear brand Speedo was founded in Australia by Scottish emigre Alexander MacRae in 1914, with the company’s innovate fits and materials eventually gracing Olympic athletes and casual beachgoers alike.
Speedo may attract attention through its famous ‘budgie smuggler’ cuts, but it was the company’s financial potential which encouraged British investment firm The Pentland Group to take ownership of it in the 1990s.
Carlton and United Breweries (CUB) is the firm behind some of Australia’s most cherished beers, including Victoria Bitter, Carlton Draught, Cascade and Crown Lager.
After shifting hands to London-based SABMiller in 2011, CUB was acquired by Japanese beverage powerhouse in 2020 in a deal worth some $16 billion.
The long-standing soft drink manufacturer Schweppes Australia was also acquired by Asahi in 2009 for $1.18 billion, in a deal which directed cordial maker Cottee’s to the Asahi Beverages Group.
Of course, Australian beverages are not the only asset class to catch the attention of foreign conglomerates. Biscuit-maker Arnott’s, behind pantry staples like Tim Tams and Shapes, came under the full ownership of the American Campbell Soup Company.
In turn, Campbell Soup Company sold the Australian brand to US private equity firm Kohlberg Kravis Roberts in 2019 for an estimated $3.2 billion.
Since 2014, department store mainstay David Jones has been controlled by South African investment group Woolworths Holdings Limited (not to be confused with the separate Australian supermarket chain Woolworths).
Since 1998, Woolworths Holdings Limited has also owned a controlling interest in Country Road. Today, it oversees the Country Road suite of brands, including Trenery, Mimco, Politix, and Witchery.
Australian surf culture is a significant cultural export, with the dream of ocean adventures reaching those who’ve never caught a wave in their life.
So powerful is the allure of surf culture that Australian-born brands Billabong, Quiksilver, and Roxy are all now under the ownership of Boardriders Inc., itself owned by US private equity giant Oaktree Capital Group.
If you dreamed about wearing new Billabong boardshorts as a kid, your lunchbox was likely filled with Uncle Tobys muesli bars.
However, the Australian-born breakfast and snack food provider was snapped up by Nestlé in 2006.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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