Metcash in trading halt after bid for Superior Food Group

The news: Food and beverage wholesaler Metcash has placed its shares in a trading halt following a bid for restaurant supplier Superior Food Group.

The numbers: Metcash told the ASX it is in talks for the acquisition of Superior Food but discussions were incomplete at this stage. It has asked for the trading halt to extend until 5 February. Earlier, a report in the Australian Financial Review said the target business is likely to be valued at around $500 million.

The context: Superior Food, which supplies ingredients and packaging to restaurants and cafés, is owned by private equity firm Quadrant. Metcash, which supplies the IGA supermarkets network as well as other retailers, had flagged a “significant pipeline of strategic growth opportunities” in its half year results in December. Rival Woolworths entered the food service distribution segment in 2021 after acquiring a majority stake in PFD Food Services.