PEP to tap buyers for Griffin’s Foods sale

Australasian private equity firm Pacific Equity Partners (PEP) plans to approach potential bidders for the sale of its New Zealand snack food business Griffin’s Foodsover the next few weeks, according to sources.

The deal has been valued at about A$750m (US$743m) including debt, and PEP has appointed UBS as well as Goldman Sachs to advise on the sale.

Potential buyers for the company, which has 50% of the biscuit market in New Zealand and is the leading snack business in Australia, include international food companies Kellogg, General Mills, Nestlé, and China’s Bright Foods.

Last month, China’s Bright Food said that it was eyeing the purchase of Griffin’s Foods as it sought acquisitions to expand in Australia and New Zealand.

The successful sale of Griffin’s would mark the latest exit for PEP, which agreed to sell New Zealand beverage group Independent Liquor for $1.3bn to Asahi last month.

PEP acquired Griffin’s from Danone in 2006 for NZ$385m (US$303.88m).