Scoop has an Ethical Paywall
License needed for work use Register

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Leader MD disputes that the food company is 'up for sale'

Wednesday 12 October 2016 03:38 PM

Leader managing director disputes AFR report the food company is 'up for sale'

By Sophie Boot

Oct. 12 (BusinessDesk) - Tony Peterson, managing director of frozen convenience food manufacturer Leader, has rubbished a report in the Australian Financial Review that the company is up for sale, though he says the company is "looking at opportunities".

This morning, the AFR reported that Leader, which they called Leader Foods, was up for sale, handled by the local arm of KordaMentha. The Australian publication said Pacific Equity Partners (PEP) might "have the edge" amongst multiple private equity firms who have shown interest.

Leader produces frozen foods including burgers, schnitzels, hotdogs and lasagna toppas, which it sells to retailers including New World, Countdown, and Pak'n Save as well as supplying fast food retailers.

"It's about as correct as they got our name, not very correct at all," Peterson told BusinessDesk. "We've been looking for an investor into the company. It's a food company, nobody's going to come in and buy it lock stock and barrel unless it's a trade partner.

"We've been looking at the opportunity of an exit strategy over the next five years, and specifically looking for a partner that can respect the brand, the culture, the integrity of the company and help move it forward. There's a lot of people trying to buy the business, but it's just choosing - if we do - the right person for the future."

PEP has been trying to buy Leader for about the last five years, Peterson said, as have other investment companies.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

"We're looking at opportunities and KordaMentha are dealing with those opportunities for us - something may happen, or something may not happen," Peterson said. "It was a big surprise to see that this morning, I'd been over in Australia and had several meetings two weeks ago."

The AFR also reported that Leader has earnings before interest, tax, depreciation and amortisation of about $110 million, a figure Peterson said was incorrect and that it could be worth as much as $100 million.



© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments.More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.