Rhodes Food Group will acquire food product supplier Pakco for R200-million.
The JSE-listed company noted in a statement that the acquisition of Pakco aligned with its strategy of expanding its business operations through value-accretive acquisitions and that it would enhance its position in canned foods, as well as the salads and pickles categories, while Pakco’s dry-packed products offered the opportunity to enter into a new category.
Pakco, based in Durban, is a manufacturer of spices, condiments, instant meals and complementary products. It manufactures, packs and distributes dry-packed, bottled and canned foods under its own brands and private label.
Pakco has several strong, well-established brands including Bisto, Southern Coating and Buffalo in the dry-packed meal solutions category; Trotters and Hinds in the dry-packed dessert category; Gold Dish in the canned meal category and Pakco spices and pickles.
The products are stocked by major retailers, wholesalers and independent stores in South Africa and are exported to eight neighbouring States.
The acquisition is subject to the certain conditions, including approval by the Competition Commission.