TOKYO — Nisshin Seifun Group Inc. has reached agreement to acquire Allied Pinnacle from Pacific Equity Partners, a move that Nisshin said will make it the largest flour milling company in Oceania. Financial terms of the transaction were not disclosed, though media reports suggested the deal was valued at just under A$1 billion ($710.5 million).

Based in Rhodes, Australia, Allied Pinnacle is Australia’s largest end-to-end bakery ingredient supplier with a strong presence in flour, premixes and prepared bakery products. The company has annual sales of approximately A$750 million and distributes its products to supermarkets, industrial bakers and independent bakeries across Australia. Allied Pinnacle operates seven mills and four mixing sites.

“Nisshin Seifun intends to strengthen its competitive advantage through a combination of the rich market experiences and know-how of both Nisshin Seifun and Allied Pinnacle, and further expand our businesses after completion of this transaction,” Nisshin Seifun said. “Additionally, Nisshin Seifun’s New Zealand subsidiary Champion will generate synergies through improved efficiencies in marketing and business operations by leveraging both sales and distribution networks.

“We believe having business operations in Australia, one of the largest wheat flour producing countries globally, will enable us to significantly enhance procurement capabilities in our group, in particular by collecting market insights on wheat flour-related markets and building broader relationships with wheat producers and commodity traders.”

Nisshin added that the combination of its distribution network with Allied Pinnacle’s network will contribute toward expansion in Asian markets where dietary culture has been westernized and wheat flour demand has been growing rapidly.

James Ajaka, chief executive officer of Allied Pinnacle, said the company is excited to be working with Nisshin.

Allied Pinnacle was formed through the combination of Pinnacle Bakery and Integrated Ingredients, which was acquired from the Kerry Group in May 2015, and Allied Mills, which was acquired in March 2017 from a joint venture between GrainCorp and Cargill.

Founded in 1900, Nisshin is the largest flour milling company in Japan with revenue of A$6 billion. The company is involved in the manufacture and sale of wheat flour, processed foods, biotechnology and pet foods.