Alterra-led consortium to acquire majority stake in Chill Beverages

15th May 2024 By: Darren Parker - Creamer Media Contributing Editor Online

Alterra-led consortium to acquire majority stake in Chill Beverages

Photo by: Score Energy Drink

A consortium led by private equity firm Alterra Capital Partners and including broad-based investment holding company the Mineworkers Investment Company (MIC) and independent private equity house Admaius Capital Partners, will acquire a majority stake in beverage company Chill Beverages from Old Mutual Private Equity (OMPE).

This acquisition marks the first investment by Alterra’s Africa Accelerator Fund.

Chill operates in one of the fastest growing beverage segments through its range of Score energy drinks, Fitch & Leedes premium mixers and Chateau Del Rei sparkling wine. The company has a national footprint, robust production capabilities in Gauteng and the Western Cape, and is led by an experienced management team.

The Alterra-led consortium intends to further support Chill through additional marketing spend on its brands, increased focus on developing a wider Gauteng distribution network and investment in new product development to extend its product range.

“Energy drinks is the fastest growing beverage category in South Africa and Score is a significant player in this market. The recent launch of Chateau Del Rei has been very successful and its potential is enormous. We look forward to partnering with management to deliver on our robust value creation initiatives and believe Chill can continue to go from strength to strength,” Alterra partner Bruce Steen said on May 15.

The consortium also aims to work with Chill management to drive transformation at the company, including developing a diverse bench of talent throughout the organisation, ensuring diverse representation at the board and executive management, as well as supporting black- and female-owned enterprises across its supply chain. 

“Our modus operandi is to partner with strong management teams to deliver superior business growth by significantly empowering them through business ownership and inculcating a strong growth mindset. We wish the business and the management team continued success in their next chapter with the Alterra consortium.” OMPE co-head Chumani Kula said.

Debt financing for the transaction is being provided by financial institutions Standard Bank and RMB, while advisers on the transaction include law firms Webber Wentzel, Cliffe Dekker Hofmeyer and ENS on legal, as well as EY on financial due diligence. 

"MIC has maintained a keen interest in investment opportunities within the food and beverage sector. We are pleased to be part of the team supporting a bourgeoning South African beverage company in Chill. Through this partnership, we aim to drive positive transformation and sustained success within Chill," MIC CEO Mary Bomela said.