CHAMP acquires leading specialty food companies in Australia and New Zealand

The companies will operate as a new enterprise under the name Manassen Foods, the largest of the four acquired companies.

20/04/06 Castle Harlan, Inc., the New York private equity investment firm, has announced that a holding company formed by its Australian affiliate, CHAMP Private Equity, had acquired four top distributors of branded specialty foods in Australia and New Zealand. Terms of the transaction were not disclosed.

The companies will operate as a new enterprise under the name Manassen Foods, the largest of the four acquired companies. Together they will be the leading specialty branded food supplier in Australia and New Zealand with total annual revenues of more than A$250 million and more than 350 employees.

CHAMP said it intends to work with Manassen to pursue the acquisition of additional complementary businesses.

Manassen is one of the largest manufacturers, importers and distributors in Australia of international and company-owned branded products to retail groceries. Many of the brand names it handles are well known in the U.S., including Mrs. Fields Cookies, S&W Mayonnaise, Laughing Cow cheese, Camp Maple Syrup and Carr's Water Crackers.

CHAMP said it would own approximately 51 percent of the new company, and Manassen management and other shareholders will continue to own a significant equity stake. Roy Manassen, who is chairman of Manassen, will be the second- largest single shareholder in the new entity.

Manassen and his management team will operate the expanded company. They will be joined by Michael Bracka, who will become chief executive officer in early June. He formerly was the managing director of Kellogg's Australia.

The new holding company has also acquired:
- Great Southern Foods, which distributes fresh and dry noodles and fermented-milk drinks;
- King Oscar, a premium brand in canned sardines in Australia since 1913 and now a market leader worldwide;
- Hutchinson, a New Zealand importer and distributor of many leading specialty food brands.

CHAMP represents the largest independent private equity funds in Australasia. It was formed in 2000 by Australian Mezzanine Investments Ltd. of Sydney and Castle Harlan, Inc., a New York-based private equity firm, and is the adviser to the CHAMP I and CHAMP II Funds, which have approximately A$1.5 billion of equity capital. The CHAMP I Funds have completed seven management buyouts with a combined transaction value in excess of A$1.2 billion, including Austar Communications, Bradken Limited and Penrice Limited.

CHAMP is currently investing equity from the CHAMP II funds. The Manassen Food deal is the third investment completed with these funds since December 2005.

Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America, Europe and Australasia. Its team of 17 investment professionals has completed 45 acquisitions since its inception with a total value in excess of US$7 billion.

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