JSE-listed fishing and food business Sea Harvest’s Cape Harvest Food Group subsidiary has concluded a share purchase agreement to acquire dairy processing company Ladismith Cheese for R527-million.
The transaction represents the acquisition of a profitable branded fast-moving consumer goods food manufacturer of significant scale in the agricultural sector with a long record, strong national brand and proven management team, Sea Harvest said of the rationale for the acquisition.
Additionally, the company said the dairy sector is expected to experience continued growing demand for cheese and butter in response to consumer dietary changes towards natural fat products.
Ladismith Cheese is a value-adding dairy processing company that was established in 1999 and is based in the Western Cape. The company produced about 9 000 t of cheese and butter and 7 500 t of dairy and nondairy powder, while generating a revenue of R681-million and profit after tax of R57.7-million for the financial year ending January 31.
Meanwhile, the acquisition forms part of Sea Harvest’s investment strategy, which includes acquisitions in the seafood sector, with the acquisition of Viking Fishing; in the Australian seafood sector, with investment into the Spanish Mackerel fishery business; and in the aquaculture sector, with the 51% acquisition of Viking Aquaculture.