GrainCorp is selling its 60 per cent stake in manufacturer of bakery premixes and products Allied Mills to Pacific Equity Partners (PEP) for $190 million.
PEP said in a statement Allied Mills will be integrated with their Pinnacle, their Bakery and Integrated Ingredients business.
With over a century of flour milling and food ingredient manufacturing experience, Allied Mills annually buys and processes around 800,000 tonnes of wheat and specialty grains including maize, rye, triticale, organic hard, soft and noodle wheats.
Pinnacle has a leading position in the sweet bakery products and bakery ingredients market, manufacturing and distributing finished and unbaked goods such as cakes, pastries, cookies, muffins and donuts, as well as bakery ingredients such as fillings and fondants. Both businesses service major supermarkets, food manufacturers and foodservice operators.
“Since acquiring Pinnacle, PEP has substantially increased investment in both R&D and manufacturing capability and demonstrated an unwavering focus on delivering great results for our customers. The combination of Pinnacle and Allied Mills offers a unique opportunity to generate value through category-leading innovation and technology solutions while embedding a world-class supply chain which can service more customers, more often,” said Pinnacle CEO, James Ajaka.
The combined group will concentrate on products in the frozen specialty baking, in-store baking and bakery ingredients areas.
The transaction is expected to close within two to three months.