TOKYO (Reuters) - Japanese flour maker Nisshin Seifun said on Tuesday it would buy Australia’s Allied Mills from private equity firm Pacific Equity Partners for A$574 million ($412 million), in its latest step overseas to offset a shrinking local market.
Nisshin, which is best known in Japan for its flour, cake mix and spaghetti, said it will buy the Australian firm as part of a push to increase its overseas flour businesses, having acquired a firm in the United States and New Zealand in 2012 and 2013, respectively, and a Thai business last year.
Saddled with an ageing population at home, Japanese retailers and food companies have made a drive for overseas markets, particularly in emerging countries. Allied Pinnacle has a leading position in Australia’s flour market, Nisshin Seifun said in a statement.
Nisshin would buy the entire 98.9 percent stake in the company held by Pacific Equity Partners, it added.
($1 = 1.3930 Australian dollars)
Reporting by David Dolan; Editing by Rashmi Aich