Rhodes Food is accelerating the implementation of its growth strategy with the announcement of two further acquisitions, totalling R112-million, following the January announcement of its acquisition of fruit juice product manufacturer and distributor Pacmar for R165-million.
The company, a subsidiary of JSE-listed Rhodes Food Group Holdings, on Friday said it planned to acquire fruit juice puree manufacturer Boland Pulp for R102-million and canning and bottling company Deemster for R10-million.
These latest acquisitions further supported Rhodes Food’s strategy of expanding into new product categories that complement the company’s current product ranges, CEO Bruce Henderson advised.
He pointed out that in listing in October 2014 one of Rhodes Food's aims had been to create financial capacity to pursue selective acquisitions to accelerate the group’s growth strategy.
Rhodes Food would acquire the business assets of Boland Pulp, a fruit and vegetable concentrates and purees producer, for R102-million, as well as the value of the trading stock, capped at R50-million.
Rhodes Food would also acquire the properties from Boland Properties for R7.9-million, exclusive of value-added tax.
This acquisition comprised three Western Cape properties, in Wellington, measuring 5 318 m2, 606 m2 and 2 690 m2.
In its 2014 financial year, Boland Pulp generated revenue of R313-million and earnings before interest, taxes, depreciation and amortisation (Ebitda) of R30-million.
The company produced bulk fruit and vegetable juices and purees for the domestic and regional markets, and also exported to over 30 countries internationally. Through its retail division, Boland Pulp sold purees, sauces and baby foods in resealable pouches under the brands of Puré Chef Ease, Puré Squish Baby and Puré Organic Mini Meals.
Meanwhile, Rhodes Food would acquire vegetable canning and salad bottling business Deemster for R10-million, as well as the value of its trading stock, which was capped at R15-million.
For the financial year ended June 30, Deemster’s Ebitda amounted to R235 000 on revenue of R50.9-million.
Rhodes Food expected the acquisition of Bethlehem-based Deemster to enable it to enter new product categories such as beetroot and gherkins. Deemster primarily copacked products for third-party brands and produced private-label products for retail groups including Pick n Pay, Spar and Woolworths.
Rhodes last month announced its acquisition of Western Cape-based fruit juice manufacturer and distributor Pacmar. The acquisition was currently subject to a due diligence investigation and competition approval.
Rhodes Food had fruit canning and production plants in Tulbagh, in the Winelands of the Western Cape, and Swaziland and produced a range of fruit purees and juice concentrates.