Speculation surrounding a possible $400m takeover bid of Peters Ice Cream by Australia’s largest dairy processor, Murray Goulburn, continues to mount in light of a presentation from Peters’ owner, private equity firm, Pacific Equity Partners (PEP).
MG looked to purchase Peters two years ago before it was bought by PEP for $250m from former owner, Nestle in mid-2012. According to The Australian, MG recently hosted a presentation by the management of Peters Ice Cream and an addition, PEP is believed to have recently hired investment bank, Morgan Stanley to oversee a potential trade sale or public float.
Since making a tidy profit of $51m from the sale of Warrnambool Cheese and butter earlier this year, chief executive of MG, Gary Helou has expressed his interest in turning the Melbourne-based cooperative into a competitive player in the global dairy scene, stating at the time of the WCB sale that MG has “some very, very interesting growth prospects.”
Should MG be successful in its alleged bid for the Peters Ice Cream Company, it would open up a new revenue stream for the cooperative. According to IBISWorld, Peters holds around a 37 percent share of Australia’s $630m ice cream industry, making it the largest local player.
Other prospective buyers of Peters Ice Cream include Bulla and French company R&R Ice Cream along with other private equity firms.