Pacific Equity Partners has made an offer valued at almost $230 million for frozen food group Patties Foods.
A short time ago, Patties shares were up 23% to $1.64, just below the offer price of $1.65.
The companies brands include Four’n Twenty, Patties, Herbert Adams, Nanna’s and Chef’s Pride.
The board of Patties Foods Limited confirmed it was in talks with the private equity group. It said the $1.65 cash a share offer was for 100% of the company.
“The board remains confident in management’s plans for growth in the core brands and the business is experiencing strong momentum,” said Patties chairman Mark Smith.
“The 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.”
Greenhill & Co and Minter Ellison are advising Patties.
Patties Foods last year sold its Creative Gourmet business after a Hepatitis A outbreak. More than 30 people were diagnosed with Hep A and government authorities believed at the time the common link was Patties Foods’ frozen berries.
In March last year, Pacific Equity Partners announced an agreement with Kerry Group for the acquisition of Kerry’s local Australasian food manufacturing business, Pinnacle.