Patties Foods Receives $230 Million Offer From Private Equity Outfit

01 Jun 2016 --- Patties Food, the Australian food processing company, has received a takeover offer of just under $230m from the private equity firm Pacific Equity Partners (PEP).

The offer comes just over 12 months after Patties, which owns brands including Herbert Adams and Chefs Pride, was caught up in a high-profile food scare when it was forced to recall frozen berries after they were linked to a hepatitis scare.

The scare and recall rocked the company‘s share price and sent its profits tumbling, costing the business nearly $14m.

Patties, which also makes pie brand Four'N Twenty, has received an offer of $1.65 a share from the private equity company.

Patties said that it will talk to PEP but said there was no guarantee that a deal would get done.

"The board remains confident in management's plans for growth in the core brands and the business is experiencing strong momentum," said Patties chairman Mark Smith in a statement to shareholders.

While Patties' profits were hurt by the product recall, its share price has risen in recent weeks.