GrainCorp's 15-year investment in flour miller ends
The complex sale of 100 per cent of Allied Mills is the final curtain on GrainCorp’s 15-year investment in the company.
Firms: Gilbert + Tobin (GrainCorp); Herbert Smith Freehills (Cargill); Allens Linklaters (Pacific Equity Partners); Clifford Chance (Allied Mills)
Deal: GrainCorp has sold its share in Allied Mills Australia Pty Ltd to Pacific Equity Partners (PEP) as part of PEP’s total acquisition of the company.
Value: $455 million (enterprise value)
Area: Corporate, M&A
Key players: The G+T team advising GrainCorp was led by partner John Williamson-Noble (pictured). Associates Beth Jeffers and Chris Morse assisted with the deal.
Allied Mills is one of the country’s largest manufacturers and distributors of flour and bakery pre-mixes. It was established as part of a joint venture between GrainCorp and Cargill Australia.
As part of the agreement, PEP will acquire all of the Allied Mills businesses, including the 60 per cent GrainCorp stake and the 40 per cent Cargill Australia stake in the company. The consideration equates to an enterprise value of Allied Mills of $455 million.
John Williamson-Noble, G+T corporate advisory partner, said the deal involved close collaboration between all parties to ensure that everybody’s interests were met.
“The transaction involved a high level of co-operation between GrainCorp, Cargill and Allied Mills and their advisers, since it entailed ensuring that the interests and agendas of all three parties were aligned,” Mr Williamson-Noble said.