Photo by: Saint Pie
JSE-listed Rhodes Food Group will buy food manufacturer Saint Pie for R20-million, it said on Monday.
The purchase agreement would also see Rhodes cover Saint Pie’s business liabilities of about R7-million.
Saint Pie started operations in 1994 and conducted its business from Lydenburg, Mpumalanga.
A producer of pastry products, mainly savoury pies, Saint Pie distributed to fuel station forecourts, food retailers and independent outlets throughout South Africa. It had distribution centres in Lydenburg, Pretoria and Welkom.
“The acquisition presents an attractive investment opportunity which is aligned with our strategy of expanding our business operations through acquisitions,” the group said in a statement.
Rhodes Food, which listed on the JSE in February, already had a pies and pastries facility based in Aeroton, Gauteng, which produced a range of pastry products under its Magpie brand. In addition to this range, Rhodes Food also produced pies and pastries under a private label for Woolworths and Corner Bakery.
The acquisition would enable Rhodes Food to extend its pie business operations by adding this additional well-established pie brand. The acquisition would also result in customer and geographic diversification.
Saint Pie was expected to generate about R60-million in revenue in its current financial year to end September 30 and R4-million in earnings before taxes, interest and amortisation during this period.