Australasian food group Food Holdings is planning to buy the recently-listed Cooks Food Group.
The private-equity owned firm, which owns brands including Trident, Ryvita and Lurpak, is offering $4 million for Cooks.
Four major shareholders who own 80% of Cooks support the deal.
Cooks Food Group chairman Keith Jackson, who holds 58% of the stock, says Food Holdings supports its moves to expand the business by buying what he describes as iconic household brands.
As part of that, Food Holdings will continue Cook's $12 million purchase of the Diamond and DYC brands from Goodman Fielder.
Mr Jackson says the $4 million purchase price will pay back most of Cooks' debt, and recover recent costs related to its expansion plan.
Cooks also intends buying back stock from shareholders who participated in a recent share purchase plan at 16 cents a share.
Cooks was an amalgamation of condiments business Cotterill and Rouse, general pantry goods maker Murdoch's and chilled foods company Sahara.
A special meeting to approve the deal will be held in May.
Cook's Food Group was unchanged at 25c a share at the close of trade on Friday.
