Investors grab Hutchinson

Speciality food brand importer and distributor Hutchinson has been taken over by a holding company formed by private equity investors.

Castle Harlan, a New York private equity investment firm, said Food Holdings, formed by its Australian affiliate, CHAMP Private Equity, had acquired Hutchinson and three other distributors of branded speciality foods in Australasia.

Terms of the deal were not disclosed but Castle said the companies would operate as a new enterprise under the name Manassen Foods.

Together they will be the leading speciality branded food supplier in Australasia with total annual revenues of more than $298 million and more than 350 employees.

CHAMP, which owns 51 per cent of the new company, said it intended to add more businesses and double the revenue of Manassen Foods over the next three years.

The investment company raised a A$950 million ($1.13 billion) fund last July and said it was eyeing more acquisitions in Australasia.

CHAMP director Cameron Buchanan said one potential "bolt-on" target company would boost revenue to more than A$500 million.

Roy Manassen, who is chairman of Manassen and will be the second-largest single shareholder in the new entity, said he agreed to the deal because he was tired of writing his own cheques for the company he inherited from his father 26 years ago.

He plans to stick with the industry of speciality food brands.

The company's brands include Mini Babybel Cheeses, Wokka Noodles, Sharwoods Indian Cuisine, Trident, Carr's Water Crackers, Castello Cheeses and Findus Frozen Foods.

Manassen Foods will be headed by Michael Bracka, formerly managing director of Kellogg's Australia.

The Manassen deal follows rival private equity firm Pacific Equity Partners' acquisition of biscuit-maker Griffin's for $385 million, and is CHAMP's third acquisition from its CHAMP II Fund.

- NZPA