<article><a style="color: #000080;" href="http://www.dealstreetasia.com/tag/pacific-equity-partners/" target="_blank">Pacific Equity Partners</a> has agreed to acquire <a style="color: #000080;" href="http://alliedmills.com.au/" target="_blank">Allied Mills</a>, an Australian maker of bakery products.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/tag/pacific-equity-partners/" target="_blank">Pacific Equity Partners</a> has agreed to acquire <a style="color: #000080;" href="http://alliedmills.com.au/" target="_blank">Allied Mills</a>, an Australian maker of bakery products.
<a style="color: #000080;" href="http://www.graincorp.com.au/" target="_blank">GrainCorp</a> is selling its 60 per cent stake in Allied Mills for a consideration of $190 million (pre-tax and transaction costs), whiles its joint venture (JV) partner <a style="color: #000080;" href="https://www.cargill.com.au/" target="_blank">Cargill Australia</a> has sold its 40 per cent stake to PEP.
<a style="color: #000080;" href="http://dealstreetasia.com/tag/credit-suisse" target="_blank">Credit Suisse</a> provided financial advice to GrainCorp and Cargill on the transaction while Gilbert + Tobin provided legal advice to GrainCorp.
Allied Mills maintains a flour milling, pre-mixing manufacturing and food ingredient footprint with operations in all mainland Australian states. In addition, it operates milling facilities for manufacturing of its bakery products as well as food manufacturing facilities ad distribution centres. e bulk or palletised delivery.
PEP has agreed to acquire all of the business assets of Allied Mills and equates to an enterprise value of Allied Mills of $455 million. In addition to the consideration, there is also the benefit of $35 million of franking credits being distributed to GrainCorp.
The sale is subject to usual regulatory approvals. Commenting on the sale, GrainCorp Managing Director &amp; CEO Mark Palmquist said, “This transaction is consistent with our strategy to proactively manage our portfolio to improve returns. The interest shown by PEP to acquire full control of Allied Mills provided us with an excellent opportunity to realise the value in Allied and create balance sheet flexibility for the future.&#8221;
GrainCorp and Cargill Australia have been joint investors in Allied Mills for over 15 years.
<a style="color: #000080;" href="https://au.linkedin.com/in/alistair-bell-1742479" target="_blank">Alistair Bell</a>, Group Chief Financial Officer of GrainCorp, said: “Over a number of years GrainCorp has been investing in a series of capital projects and as these projects are completing, our focus has been on maintaining a disciplined approach to capital management and portfolio optimisation. This sale of an equity investment in Allied Mills creates an opportunity to realise value, reduce gearing and improve our returns. The funds of $190 million will provide flexibility as we approach our peak gearing and remain available for other redeployment opportunities.”
GrainCorp’s share in Allied Mills was acquired from Goodman Fielder in 2002 and has a book value at 30 September 2016 of $178 million.
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Pacific Equity Partners is acquiring Allied Mills, an Australian maker of bakery products for $190 million. 

Australia: Pacific Equity Partners to acquire Allied Mills in $190m deal

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Australia: Pacific Equity Partners to acquire Allied Mills in $190m deal

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