Japan’s largest miller snaps up Australia’s biggest baked goods manufacturer

By Gill Hyslop

- Last updated on GMT

Nisshin has acquired Allied Pinnacle. Pic: ©GettyImages/invanmateev
Nisshin has acquired Allied Pinnacle. Pic: ©GettyImages/invanmateev

Related tags Nisshin Seifun Group Allied Pinnacle Flour Baked goods Australia

Nisshin Seifun Group Inc. has acquired Allied Pinnacle, Australia’s biggest flour and baked goods manufacturer, from Pacific Equity Partners.

The terms of the deal have not been disclosed, however, reports suggested the deal was valued at just under AU$1bn (US$710.5m).

The move is part of Tokyo-based Nisshin’s international expansion strategy to buy companies with high growth potential.

It is the Tokyo-based company’s seven acquisition since 2010, including acquiring US flour miller Miller Milling Co. in 2012 and Champion Flour Milling in New Zealand for NZ$51m (US$42.4m) in 2013.

The Allied Pinnacle acquisition will also allow Nisshin to leverage product development capability and provide value‐added products.

Driving innovation

Rhodes-based Allied Pinnacle is Australia’s largest end-to-end bakery ingredient supplier, producing flour, premixes and prepared bakery products under the brands Allied Mills, The Happy Cookie Co. and The Pastryhouse, among others, for major supermarkets, industrial bakers and independent bakers across the country and Tasmania.

The company was formed through the combination of Pinnacle Bakery and Integrated Ingredient – which was acquired from the Kerry Group in 2015 – and Allied Mills – acquired in 2017 from a joint venture between Graincorp and Cargill.

It operates 14 manufacturing sites and generates approximately AU$750m (US$537.8m) in sales annually.

“The Allied Pinnacle executive team and I are excited to be working with the Nisshin Seifun Group,”​ said James Ajaka, CEO of Allied Pinnacle.

“Nisshin’s global footprint and track record of continually investing in driving innovation perfectly matches our strategy of delivering our unique technologies and products to markets around the world.

“[We] are also grateful to Pacific Equity Partners for all their support and encouragement over the past four years as we have heavily invested in bringing the Allied Mills and Pinnacle Bakery business together and turning the two into a world-class fully integrated business.”

Nisshin was founded in 1990 and today is the largest flour milling company in Japan with a revenue of AU$6bn (US$4.24bn) for the financial year ended March 31 2018.

The listed company also sells processed foods, biotechnology and pet food.

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