Private equity firm PAG Asia Capital is reported to have acquired Australia-based cake retailer The Cheesecake Shop for A$100 million ($76 million). PAG has not revealed details on the transaction terms yet.
According to an AVCJ report, citing a source, PAG will work with The Cheesecake Shop’s existing management team as well as existing backers.
The Cheesecake Shop operates a network of more than 200 franchises in Australia, New Zealand, and the UK. It was started in 1991 by brothers Warwick and Robert Konopacki, and is now led by Ken Rosebery as managing director, according to the company’s website.
In addition to the franchising business, an ingredients supply operation was established, called United Network Suppliers, to support the retail bakeries. The headquarters of the business is now located in an office and warehouse complex at Villawood in Western Sydney (NSW Australia) and new franchisees are trained in the on-site bakery and retail store front.
It seems that PAG is very bullish on the dessert space this year. On Wednesday, PAG announced that it has invested $170 million in Europe-based dairy and ice cream producer Food Union Group. Together with Meridian Capital, who pumped in $55 million, the investment round amounted to $225 million.
The investment will further help Food Union grow its business in China, according to The Baltic Course report. Food Union commenced regular exports of dairy products to China in June 2015, consolidating its position in Shanghai supermarkets. The company’s shipments to China are delivered in containers two to three times a month.
Founded in 2002, PAG has grown to become one of Asia’s largest independent alternative investment management groups with $16 billion in capital under management across private equity, real estate, and absolute returns.
The company employs over 380 people in major financial hubs in Asia. Since its establishment 15 years ago, the group has invested over US$30 billion in markets across the region.