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SYDNEY, AUSTRALIA — GrainCorp confirmed the completion of sale of its 60% stake in Allied Mills Australia Pty Ltd to Pacific Equity Partners (PEP) following regulatory approvals. GrainCorp’s share in Allied Mills was acquired from Goodman Fielder in 2002.

Proceeds from the transaction are expected to be A$190 million (pre-tax and transaction costs). GrainCorp is also receiving A$35 million of franking credits.

“GrainCorp wishes PEP/Pinnacle the best for the future and we thank the team at Allied Mills for their years of hard work and innovation,” said Mark Palmquist, managing director and chief executive officer at GrainCorp. “We look forward to maintaining our close working relationship with them for years into the future.”

Allied Mills is Australia’s largest supplier of flour and bakery pre-mixes to bread stores, in-store supermarket bakeries and the industrial food service sector. The company operates seven flour mills in Queensland, New South Wales, Victoria and Western Australia.

Allied Mills will join Pinnacle Bakery & Integrated Ingredients as part of PEP’s portfolio. PEP acquired Pinnacle in May 2015, and the baked foods manufacturer makes and distributes finished baked foods such as muffins, cakes, donuts and slices, as well as frozen and unbaked products such as pastries, cookies, scones, sausage rolls, bagels and pastry shells. The company has more than 3,500 customers throughout Australasia, and is a major supplier to supermarkets, food service and bakery retailers.