The Australian government is offering debt financing to Patties Foods Group to help the pie major “modernise” production.
According to a statement by the National Reconstruction Fund Corporation (NRFC) Patties will receive A$36m ($23.1m) to add “advanced” manufacturing capabilities.
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A spokesperson for Four’N Twenty brand owner Patties said the company is putting the investment to work at factories in the Melbourne suburb of Pakenham and in Bairnsdale, a town further east in Victoria.
“Patties Food Group are investing to upgrade both the Pakenham and Bairnsdale manufacturing sites,” the spokesperson said. “Four’N Twenty has experience great growth over the last decade. This next growth phase will allow the company to keep up with the increasing consumer demand.”
David Gall, the CEO of NRFC, said: “Part of the NRFC’s mandate is to support manufacturing and jobs but also to give consideration to regional development, when making investments.
The NRFC is Australia’s A$15bn investment vehicle targeting areas including low-emissions technologies; “value-add” in agriculture, defence and transport.
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By GlobalDataGall added: “This transaction presents an opportunity for the NRFC to provide growth finance to assist one of Australia’s leading food manufacturers.
“Patties has an established market position, best-in-class manufacturing capability, and nationwide supply chain, as well as decades-long relationships with major Australian supermarket chains.”
Patties produces meat pies, party pies and ready meals under brands including Herbert Adams, Lean Cuisine, Leggo’s, and Home Chef.
The company operates eight manufacturing sites in Australia and New Zealand.
Patties was acquired by PAG Private Equity, a Hong Kong investor, in 2022.
In February, Patties acquired National Pies – also known as Tasmanian Bakeries – a company that has been producing savoury baked goods since 1942.
