Johannesburg - Rhodes Food Group says it is buying Pakco as it expands into spices, pickles and dry packaged meat solutions for R200 million.
The deal will add names such as Bisto, Southern Coating and Gold Dish to its brands.
The group says in a statement published tuesday that Pakco, based in Durban, is a manufacturer of spices, condiments, instant meals and complementary products. Pakco manufactures, packs and distributes dry packed, bottled and canned foods under its own brands and private label.
Its brands include:
- 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 exported to eight neighbouring African states, it says.
Read also: Rhodes' deals aid growth
Royal Foods says the deal is an attractive investment opportunity that is aligned with its strategy of expanding its business operations through value accretive acquisitions.
Rhodes Food Group chief executive officer Bruce Henderson said the group’s strategy is to complement organic growth by acquiring food producers which will enable the business to expand into new and complementary product categories.
Pakco is the seventh food producer acquired by Rhodes Food Group since listing on the JSE in October 2014, with the acquisitions totalling R690 million.
“This acquisition will enhance Rhodes Food’s position in the canned foods as well as the salads and pickles categories, while the dry-packed products offer the opportunity to enter into a new category in keeping with its strategy of lateral extensions into adjacent categories,”Henderson says.
The deal will be paid for through a combination of shares and cash and
IOL