Upmarket Australian pie maker Shakespeares Pies is to buy Western Australia's Jesters Jaffle Pies Co.

The deal means Shakespeares will operate 61 gourmet pie shops in New South Wales, Victoria, Western Australia and New Zealand, making it Australia's largest franchise pie business.

Jesters is being sold by cattle breeding operation Australian Agricultural Company, which will take a 25% stake in Shakespeares and gain seats on the board as part of the deal.  

Majority-owned by investment group Hunter Bay Partners, Shakespeares has 15 NSW stores which rise to 30 in the next year.