Iconic Tasmanian business spanning three generations sold subject to ACCC approval
For many a National Pie is synonymous with Tasmania and home. But after 85 years it is about to change hands.
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One of Tasmania’s most iconic and oldest businesses – spanning three generations – is soon to be owned by a Hong Kong private equity firm.
National Pies CEO Geraldine Tebbutt has confirmed that subject to approval by the Australian Competition and Consumer Competition,the business has been sold to another food group.
“After 85 years of production, across three generations, National Pies’ owner Rob Gough has entered into a conditional agreement to sell the business to Patties Food Group,” Ms Tebbutt said.
“This is subject to ACCC approval, and provisions have been made for long-term production and employment in Tasmania should the sale go through.
“We feel Patties Food Group is an ideal custodian of the business as it reflects the family values and commitment to the production of outstanding baked goods for Australian consumers, and we are looking forward to the opportunities ahead.”
Shadforth private wealth adviser Sam Baker said last year Paddies Food was acquired by Hong Kong based PAG Asia Capital which holds a range of food related asset globally and in Australia, including fast food chain Red Rooster.
“They are a major player in the domestic food space and this acquisition would be designed to add to their already strong footprint in baked and frozen food,” he said.
“I think National Pies building its brand presence outside of Tasmania in recent years have made them an attractive target for a larger competitor and a change of ownership may lead to further expansion of the brand around Australia.”
Mr Baker said the sale of National Pies followed the sale of other Tasmanian food-based businesses to overseas interests.
“We’ve definitely seen heightened interest by global players in recent years in Tasmanian food-based businesses. Tassal, Huon Aquaculture and Bellamy’s were all taken over by large global food companies.
“I think it is likely that the ACCC will have a look at this one, with Patties owning Four’N Twenty Pies who are a major national brand and direct competitor.
“Patties also own other frozen food brands so I suppose it will depend on to what extent this competition is outside of Tasmania.”
Patties Food Group has gone from strength to strength since it was started by a couple in Lakes Entrance in Victoria in 1966 and includes Four’N Twenty, Nannas and Herbert Adams’ pies.
National Pies was started in 1942 by Alfred Gough, a young apprentice butcher becoming a bit hit with the company saying that before long it became “a Tasmanian icon, available in almost every corner store, school canteen, sporting club and service station”.
National Pies are now sold in every state by big retailers Woolworths, Coles and Costco.
In July, Tasmanian Bakeries announced National Pies would undergo a rebrand, including a revamp of its legendary moustache logo.
Ms Tebbutt said the new branding was a testament to how far the business had come since 1942.
Originally published as Iconic Tasmanian business spanning three generations sold subject to ACCC approval
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