Patties Foods, the maker of Four’N Twenty pies, Nanna’s frozen desserts and Herbert Adam’s, has accepted a private equity takeover bid for $230 million.

Patties confirmed earlier this week that was in “advanced discussions” with Private Equity Partners (PEP), after receiving a non-binding, conditional and incomplete proposal, with PEP offering to pay $1.65 in cash for each Patties share.

Patties announced today that is has entered a scheme implementation deed with PEP’s BidCo, under which will see BidCo acquire 100 per cent of Patties.

The $1.65 per share cash offer includes a $0.25 per share special dividend.

Patties said its directors have unanimously recommended shareholders vote in favour of the scheme, subject to no superior proposal emerging and an independent expert determining the scheme is in the best interest of shareholders.

Members of Patties’ founding Riji family, which together hold 36.6 per cent of the company, are also in favour of the deal.

Patties chairman, Mark Smith, said: “Whilst the board remains confident in management’s plans for growth and innovation in the core brands and the business is experiencing strong momentum, the scheme represents an attractive value for shareholders.”

A scheme meeting is expected to be held in late August, with the implementation to take effect September 2016.

Patties currently holds 28.3 per cent of the hot savoury market within P&C, with Four’N Twenty accounting for 25.6 per cent. Patties total combined market share of P&C, including Patties brands and customer brands produced by Patties, currently sits at 58.6 per cent.

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