Secondary Buyout • Food

PAG and CPP Investments Acquire Patties Food Group

On September 15, 2022, asset manager PAG and pension CPP Investments acquired food company Patties Food Group from Pacific Equity Partners

Acquisition Context
  • This is PAG’s 4th and CPP Investments’ 7th transaction in the Food sector.
  • This is PAG’s 5th and CPP Investments’ 2nd transaction in Australia.

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M&A Deal Summary

Date September 15, 2022
Target Patties Food Group
Sector Food
Buyer(s) PAG
CPP Investments
Sellers(s) Pacific Equity Partners
Deal Type Secondary Buyout

Target Company

Patties Food Group

Melbourne, Australia
Patties Food Group is a provider of frozen savoury and frozen dessert pies, with key products including meat pies, sausage rolls and fruit pies. The company is known for some of Australia’s best-loved brands, including Four’N Twenty, Herbert Adams, Boscastle and Nanna’s, and Leader. Patties Food Group was founded in 1966 and is based in Melbourne, Victoria.
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Buyers Overview 2

Buyer

PAG

Hong Kong, China

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 2002
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

PAG is a large independent alternative investment management group focused on private equity, real estate, and absolute returns. PAG’s private equity business, PAG Asia Capital or PAGAC, focuses on large-scale buyouts, control deals, and structured minority investments. PAG’s real estate strategy manages a series of real estate opportunity and core plus funds investing in properties in Japan, China and throughout Asia-Pacific. PAG’s absolute return business focuses on building long term relationships with its partners by offering a flexible range of financing solutions to meet short and long term funding needs. PAG was formed in 2002 and is headquartered in Hong Kong.


Deal Context for Buyer #
Overall 22 of 27
Sector: Food 4 of 5
Type: Secondary Buyout 3 of 6
Country: Australia 5 of 6
Year: 2022 6 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-09-15 Vesco Foods

Osborne Park, Australia

Vesco Foods is a producer of frozen ready meals with a market position in the private label/contract manufacturing segments primarily servicing the Retail channel. Vesco Foods was founded in 1974 and is based in Osborne Park, Western Australia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-12-20 Shandong Fengxiang

Liaocheng, China

Shandong Fengxiang engages in the research and development, processing, and sale of chicken meat products from white-feathered broilers in China. It offers processed chicken meat products, raw chicken meat products, chicken breeds, and other products. Shandong Fengxiang was founded in 2010 is headquartered in Liaocheng, China.

Buy -
Buyer
DESCRIPTION

CPP Investments is a Canadian pension fund focused on a variety of investing strategies, including public equities, debt, and alternative investments. The Firm's private equity arm looks to acquire direct stakes in private companies, as well as make fund investments and acquire secondary positions. For direct stakes in companies, CPP looks to invest across North American and Europe and seeks to commit a minimum of $150 million per transaction. CPP has no industry preferences however the Firm will not invest in real assets. CPP Investments was established in 1997 and is based in Toronto, Ontario.


Deal Context for Buyer #
Overall 137 of 176
Sector: Food 7 of 7
Type: Secondary Buyout 34 of 46
Country: Australia 2 of 5
Year: 2022 11 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-09-01 Aera Energy

Bakersfield, California, United States

Aera Energy is an energy producer that provides safety and environmental performance, innovative business practices, and application of cutting-edge technology. Aera Energy was founded in 1997 and is based in Bakersfield, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-10-31 Pushpay

Redmond, Washington, United States

Pushpay is a provider of mobile commerce tools that facilitate non-point-of-sale payments between consumers and merchants. It also specialises in non-profit organisations and churches. Pushpa was founded in 2011 and is based in Redmond, Washington.

Buy $898M

Seller Profile 1

SELLER

Pacific Equity Partners

Sydney, Australia

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 10.0B AUD
Size Mega
Type Sector Agnostic
DESCRIPTION

Pacific Equity Partner (PEP) is a private equity firm focused on buyout and late stage expansion capital investments in Australia and New Zealand. PEP typically partners with management teams in acquiring businesses and focuses on transactions valued up to AU$1 Billion. The Firm prefers control situations and typically holds investments for three to six years. PEP will not invest in start-ups or unprofitable businesses, as well as gambling or tobacco companies. Pacific Equity Partners was formed in 1998 and is based in Sydney, Australia. The Firm targets various industries.


Deal Context for Seller #
Overall 21 of 23
Sector: Food 7 of 7
Type: Secondary Buyout 3 of 5
Country: Australia 14 of 15
Year: 2022 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-08-22 Altus Traffic

Macquarie Park, Australia

Altus Traffic is a traffic management company and provider of safety culture and processes supported by independent audits. It also has a focus on female, indigenous and long-term unemployed participation in the workforce, and has begun introducing hybrid vehicles into its fleet.Altus Traffic was founded in 2002 and is based in Macquarie Park, Australia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-10-28 iNova Pharmaceuticals

Singapore, Singapore

iNova Pharmaceuticals is a developer and marketer of over-the-counter and prescription medicines. iNova Pharmaceuticals was founded in 1958 and is based in Singapore.

Sell $1.4B

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