Patties Foods has acquired Simplot's facility at Pakenham in Victoria in a move that aims to boost its production capability and enable its expansion into new areas such as pasta products and ready meals.
Simplot announced the proposed closure of the Pakenham facility in August following a strategic decision to exit from the frozen meals category.
Patties Foods' Bairnsdale bakery will continue to operate as a specialist site for savoury baked goods, while the Pakenham site will be tasked with producing the company's chilled ranges, as well as sweet options from the fruit production line.
The acquisition includes the land, building and equipment at the site and Patties Foods says operations will commence in March.
Patties Foods has also secured a multi-year contract to manufacture Leggo’s pasta products for Simplot Australia, which will be produced at the Pakenham site.
Patties Foods has experienced significant growth for the entire frozen savoury category over the past 12 months, according to its CEO Paul Hitchcock.
“As the world’s largest savoury pie maker, we are experiencing consistent increasing demand for our products in Australia and abroad,” Hitchcock said.
“The greater capacity and resources we now have has us placed in a strong position as we continue to grow our manufacturing sites and product offerings into 2019.”
Simplot Australia managing director Graham Dugdale said, “Since opening the Pakenham site in 2009, we have had a hard-working and dedicated team. At this time, the welfare of our people is our main focus and we will ensure ongoing support is provided throughout the process.”
Dugdale said Simplot will support its employees with career transition, outplacement support and redundancy payments.
Patties Foods will directly communicate with Simplot employees on future employment options, and the acquisition is expected allow for the creation of more jobs within Patties Foods over the next 12 months.
