Superior Food Services is now expected to sell to a private equity firm after two of the most likely strategic buyers reportedly left the sales process.
The $3.75bn grocery wholesaler Metcash had hired investment bank Goldman Sachs to consider buying Superior Food Services, but is understood to be out of the race.
Also out of the running is Coles.
Earlier, sources had said three suitors remained in the mix to buy the business from Quadrant Private Equity.
Any acquirer would no doubt be taking a long-term view, given Superior Food Services is on offer at a time when supply chain restraints and escalating costs are at the forefront of retailers’ minds.
Two years ago Woolworths purchased a 65 per cent stake in PFD Food Services for $552m, the No.2 player in the market behind Bidvest.
Superior Food Services holds the No.3 position.
Stanton Road Partners is working on the sale of Superior Food, thought to be worth several hundred million dollars.
Quadrant Private Equity merged Melbourne-based Superior Services and Sydney-based NFD Food Services in 2015, creating a larger national group to service customers across the hospitality, aged-care and health sectors.
Extracted from The Australian
