Woolworths Group Limited’s $302 Million Acquisition of PFD Food Services

Clayton Utz worked with Woolworths Group Limited to get green light from Australia’s competition regulator for the acquisition of a 65 per cent stake in PFD Food Services Pty Limited.

Woolworths Group agreed to extend its strategic partnership with PFD Food Services, one of Australia’s leading foodservice suppliers, by acquiring a 65% equity interest in the business. Woolworths Group will also acquire 100% of PFD’s freehold properties which primarily comprise 26 distribution centres.

Woolworths Group will initially invest $302 million in PFD to acquire a 65% equity interest. The transaction implies a multiple of 11x pre-AASB 16 EBITDA  of $57 million assuming net debt of $157 million1. Woolworths Group will also acquire PFD’s freehold distribution centre properties for $249 million which will be leased back to PFD.

PFD will operate independently under CEO Kerry Smith. A separate board and governance structure will be implemented, with Rick Smith, the founder of PFD, continuing to be involved.

The Clayton Utz Competition team composed of National Practice Group Leader Kirsten Webb (Picture) , with key support from partner Mihkel Wilding, and on the Corporate side, partner Geoff Hoffman. 

Involved fees earner: Geoff Hoffman – Clayton Utz; Kirsten Webb – Clayton Utz; Mihkel Wilding – Clayton Utz;

Law Firms: Clayton Utz;

Clients: Woolworths Group Limited;

Author: Sonia Carcano