Kin Group takes Paradise biscuits label off the market

Kin Group chairman Raphael Geminder.

Kin Group is understood to have withdrawn its Paradise biscuit company from the market.

The Paradise label, which sat within its Green’s banking business, was up for sale last year.

However, the understanding is that the company of billionaire Raphael Geminder has opted to retain the operation for now.

The Paradise biscuit division was purchased in 2014 from Goodman Fielder, reportedly for $17m. It includes brands such as Paradise, Cottage Cookies and Veri Deli, as well as a biscuit manufacturing facility in Queensland.

Goodman Fielder had earlier bought the business for $78.5m around 2008 from Archer Capital, which had purchased the business from the Wong family.

Goodman Fielder was advised at the time by former UBS banker Quentin Miller.

At that time, Paradise was the biggest supplier of supermarket brands and the country’s second-largest biscuit maker behind George Weston.

The Paradise label was up for sale last year.

Now, food businesses are seen as defensive amid the global pandemic but the challenge remains increasing competition, high manufacturing costs and pricing pressure from customers Woolworths and Coles.

Among other food businesses up for sale is Gourmet Foods, which is owned by CPE Capital and is being sold through Miles Advisory.

Kohlberg Kravis Roberts, which owns Arnott’s Biscuits, is seen as the most logical acquirer of the business that sells gourmet crackers, chilled packaged seafood and sugar-free biscuits.

However, Pacific Equity Partners is also understood to have been among the contenders in the sales process. Whether it remains in the mix is unclear.

Gourmet Foods generates about $28m in annual earnings before interest, tax, depreciation and amortisation. Its brands include OB finest, Ocean Blue, Olina’s Bakehouse and Crispbic.