Patties Food Group has secured a $36 million loan from the National Reconstruction Fund Corporation to modernise its production facilities.
The company is the producer of iconic Australian pie and packaged food brands, including Four’n Twenty, Lean Cuisine, Leggo’s, Home Chef, Herbert Adams, and National Pies.
It was bought by Hong Kong-based asset management firm PAG in 2022.
The new loan, announced Friday, marks the National Reconstruction Fund Corporations (NRFC) second debt investment in as many weeks.
The corporation last Friday announced a $150 million loan agreement with Australian Sovereign Defence and Advanced Manufacturing (ASDAM).
Patties operates eight production facilities across Australia and New Zealand. Its centre in Bairnsdale, Victoria is the largest pie factory in the world.
Green Street News (formerly the Australian Property Journal) reported Patties invested more than $37 million in capacity expansion and automation for its Bairnsdale and Packenham facilities between 2017 and 2021.
It is unclear from the NRFC statement what the latest modernisation efforts will involve.
NRFC chief executive David Gall said the deal fulfilled the Corporation’s mandate to support manufacturing and jobs, and give consideration to regional development.
“Patties is an East Gippsland icon and is the second largest employer in the region, providing work and income to more than 400 employees and contractors,” he said.
“The Four’n Twenty pies made here have been feeding Australians for generations and we look forward to that being the case for generations to come.”
The NRFC in a statement said debt deals were an important part of its investment strategy, which also includes equity and guarantees.
The Corporation plans to invest $1.5 billion this financial year.
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