Pacific Equity Partners (PEP) is to buy consumer foods company Pinnacle from Kerry Group. The private equity firm did not disclose the deal value but the acquisition is believed to be worth in the region of US $193m (€177m). The transaction is expected to close in May 2015.

Last month, Kerry Group said it was in advanced talks for the sale of the Pinnacle business, which it considered non-core to its main global business. Annual revenues were €160m per annum.

Pinnacle sells baked products and bakery ingredients to 3,500 customers throughout Australia and New Zealand, and supplies to supermarkets, food service and bakery retailers.

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Pacific Equity Partners is the largest private equity fund in Australia and New Zealand with more than A$6 billion (€3.8 billion) equity funds under management.

This sale will provide Kerry with additional cash to conduct further M&A this year. This would see them with about €400m available to spend.