PEP kicks off sale of Griffin’s Foods

Australasian private equity firm Pacific Equity Partners (PEP) has initiated the sale of its New Zealand snack food business Griffin’s Foods by sending out information memorandums to prospective buyers.

The sale, which is likely to receive interest from overseas buyers, could be valued at A$750m ($743m) including debt, and the firm hopes to close a deal by the end of the year.

PEP has been increasing Griffin’s international sales, with 28% of net revenue expected to come from international sales this year, up from 10% in 2006.

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

Other potential buyers for the business, which owns 50% of New Zealand’s biscuit market and is Australia’s leading snack business, include international food companies Kellogg, General Mills and Nestlé.

Goldman Sachs and UBS are advising PEP on the sale.