All conditions precedent have been met with regard to the R165-million acquisition of Pacmar by Rhodes Food, making the acquisition unconditional, JSE-listed Rhodes Food Group (RFG) advised shareholders on Thursday.
As a reslut, Rhodes Food, RFG’s wholly owned subsidiary, acquired 100% of Pacmar’s issued share capital, effective April 1.
The deal was expected to complement RFG’s strategy of expanding its business through lateral extensions into product categories adjacent to its current product ranges.
Rhodes Food, with its two fruit plants in the Western Cape and Swaziland, respectively, produced an extensive range of fruit purees and juice concentrates, which were sold to the international beverage industry.
“The acquisition offers a significant opportunity to add further value to these products. The board of RFG is of the view that good synergies will arise from the acquisition and that Rhodes Food is well placed to add value to the Pacmar business,” RFG said in a statement in January.
Pacmar, based in Wellington, in the Western Cape, was currently active in manufacturing and packaging fruit juice and fruit nectar products for local and international distribution under various third-party brands, private label programmes and its own brands.
The Competition Commission reported in March that it had approved the intermediate merger, without conditions.