Private equity manager EXEO Capital on Wednesday announced that their Agri-Vie Fund II has acquired a 36.5 percent stake of South African non-alcoholic beverage manufacturer, Jumbo Brands.
Avril Stassen, a senior partner at EXEO Capital, said Agri-Vie Fund II has had its eye on an investment into the fast-moving consumer goods (FMCG) industry for some time now. Agri-Vie Fund II is a private equity fund focused on food and agribusiness investments in sub-Saharan Africa.
"The continued long-term growth potential of the sector, its defensive character, sound exit potential and scope to scale businesses to a regional level all bode well for a good investment opportunity," Stassen said.
"We believe that Jumbo Brands is the perfect partner in this regard, having shown very strong growth in the last few years, particularly within the South African middle and upper-middle market segments."
Jumbo Brands, founded in Durban in 1985 by the Kraaij family and relocated to Gauteng in 2006, has a strong focus on the manufacturing of fruit juice concentrates, squash, cordials, coffees, hot chocolate, and lemon juice.
The company also manufactures corn and pellet style chips and has brands that include Boston, Fruity Treat, Jolly Jumbo, Boost-A-Bag, and Fiesta's.
Fanie Venter, chairman of the Jumbo Brands Group, said they look forward to the future growth opportunities resulting from the partnership with EXEO Capital.
"While we are experienced with all aspects of operations, growth strategy and synergy extraction, EXEO Capital will play a major role in helping to identify and acquire compatible businesses as part of the company's platform growth strategy," Venter said.
Gustav Kraaij, chief executive of Jumbo Brands, said the transaction with EXEO Capital has also facilitated the transition of the Kraaij family ownership to the current generation.
"We are excited to include EXEO Capital in the very successful partnership that we have had with Fanie Venter and Jose Frazao as we jointly pursue the growth opportunities of the beverage and snack markets," Kraaij said.