Sydney-based private equity group Archer Capital has acquired Paradise Food Industries for an undisclosed sum, keeping Australia’s largest biscuit producer under Australian ownership. The deal was finalised on 30 June.
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Paradise Foods supplies both branded and generic products and contract manufacturing for a number of multinationals, employing 750 people across Australia – the majority of whom are involved in the manufacturing of biscuits, muesli and cereal bars at its Carole Park factory in Brisbane.
Tim Wong, whose family-owned Paradise says the deal recognises the potential in Paradise Foods, said: “This exciting change, will allow Paradise to grow and pursue new opportunities – not only for the brand and employees, but the biscuit eaters of Australia,” he said.
Archer partner Justin Punch said the deal shows that Paradise is ripe for further expansion. “We invest in businesses with a strong market position, growth potential, strong cash flows and significant opportunities; who are usually ready for their next phase of development. Paradise fits the brief on all those measures,” he said.
The Paradise head office will continue to be based in Brisbane and there will be no job losses as a result of the sale, Archer said.
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By GlobalDataJim Sybertsma has been appointed to replace Tim Wong as CEO, the investment firm continued. “Jim has extensive experience in the Australasian food and beverage industry, including roles with the A$500m (US$ 371.62m) New Zealand Dairy Foods business and DB Breweries. Jim played a lead role in transforming the business into a highly successful and profitable enterprise and in managing the transition from wholly-owned subsidiary to a stand-alone public company” Punch said.
Archer has invested in a number of large Australian companies, including John West Foods, Repco, Dome Coffees and Tasman Building Products. Since 1986 the private equity group has made over 30 acquisitions involving aggregate funding in excess of A$3.4bn. Archer takes a hands-on approach to its investment assessment and ongoing management of operations.
