Japan’s Nisshin Seifun to Buy Australia’s Allied Mills

Japanese flour maker Nisshin Seifun announced it would buy Australia’s Allied Mills from private equity firm Pacific Equity Partners for AUS574m (USD412m), 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.

According to Reuters, the company acquired a firm in the United States and New Zealand in 2012 and 2013, respectively, and a Thai business last year.

Saddled with an aging 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.