[South Africa] Rhodes Food Group to Acquire Boland Pulp for R102 Million
Rhodes Food Group has announced the planned acquisition of Boland Pulp, a producer of fruit and vegetable concentrates and purees, for R102 million.
Boland Pulp produces bulk fruit and vegetable juices and purees for the domestic and regional markets, and also exports to over 30 countries internationally. Through its retail division Boland Pulp sells purees, sauces and baby foods in re-sealable pouches under the Puré Chef Ease, Puré Squish Baby and Puré Organic Mini Meals brands.
In its 2014 financial year Boland Pulp generated revenue of R313 million and EBITDA of R30 million.
Rhodes also announced the purchase of Deemster, a vegetable canning and salad bottling business in Bethlehem, for R10 million. Deemster primarily co-packs products for third party brands and produces private label products for retail groups including Pick n Pay, Spar and Woolworths. The acquisition will enable Rhodes to enter new product categories such as beetroot and gherkins.
Chief executive officer, Bruce Henderson, said one of the aims of the Rhodes Food Group listing in October 2014 was to create financial capacity to pursue selective acquisitions to accelerate the group’s growth strategy.
"The acquisitions of Boland Pulp and Deemster are aligned with our strategy of expanding into new product categories which are complementary to our current product ranges," he said.
Last month Rhodes announced the acquisition of Western Cape-based fruit juice manufacturer and distributor, Pacmar. The acquisition is subject to a due diligence investigation and competition approval.
Rhodes has fruit canning and production plants in Tulbagh and Swaziland and produces an extensive range of fruit purees and juice concentrates.