GrainCorp announced this week the sale of its 60% stake in Allied Mills Australia Pty. Ltd. -- one of Australia's largest manufacturers and distributors of bakery products, premixes, flour and semi-finished products -- to Pacific Equity Partners (PEP) for $190 million. Cargill Australia, GrainCorp’s joint venture partner in Allied Mills, also sold its 40% stake to PEP.

GrainCorp said its 60% share of the equity value of Allied Mills equates to an enterprise value of $455 million.

“This transaction is consistent with our strategy to proactively manage our portfolio to improve returns. The interest shown by PEP to acquire full control of Allied Mills provided us with an excellent opportunity to realize the value in Allied and create balance sheet flexibility for the future,” GrainCorp managing director and chief executive officer Mark Palmquist said. “Along with Cargill Australia, we have been joint investors in Allied Mills for over 15 years. We would like to thank the management and employees of Allied Mills for our successful relationship over such a long period. GrainCorp wishes Allied Mills, its customers and new owners all the best, and we look forward to maintaining our positive relationship into the future.”

GrainCorp acquired its share in Allied Mills from Goodman Fielder in 2002; it was valued at $178 million on Sept. 30, 2016.

The sale is subject to the customary regulatory approvals.