Pacific Equity takes the biscuit

Kiwi biscuit and snack food maker Griffin's is to be sold for nearly $400 million to Australian private equity group Pacific Equity Partners.

French multinational Danone has been trying to sell the company - which owns popular biscuit brands such as Mallowpuffs, Toffeepops and Gingernuts - since December.

Griffin's Foods also owns the ETA snack food brand. It has annual sales of $177 million and is understood to have operating profits of close to $4 million.

Sources had been tipping PEP as the most likely buyer - reckoning it was more likely to pay a full price than the other potential buyer, Graeme Hart.

PEP is also in the process of buying Tegel from Heinz.

The €194 million ($390 million) sale price is at the top end of expectations.

PEP managing director Rickard Gardell said the company believed in the strength of the business and was looking forward to providing the local management team with support for future growth.