Rhodes Food Group, the South African company, said today (4 October) it plans to buy local spices and condiments business Pakco.
A takeover of Pakco, which is subject to due diligence and competition approval, would be Rhodes Food Group’s seventh acquisition since it listed in October 2014.
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Rhodes Food Group said it planned to buy Pakco, the owner of brands including Hinds spices and Gold Dish canned food, for ZAR200m (US$14.7m). Pakco also holds the licence in South Africa to the Bisto brand owned by UK business Premier Foods plc.
“RFG plans to extract immediate synergy benefits from the acquisition while improving the profitability of Pakco and increasing sales volumes in the medium term,” Rhodes Food Group said.
Pakco generated revenue of ZAR221.5m and EBITDA of ZAR9.5m in its 2015 financial year.
In May, Rhodes Food Group booked a jump in first-half earnings, boosted by higher sales. The company revealed turnover rose by 54% to ZAR2bn. Rhodes Food Group said its growth was due to sales in South Africa as well as throughout sub-Saharan markets.
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By GlobalDataThe acquisitions Rhodes Food Group has made since it floated two years ago include the purchase of local halal bakery group Alibaba Foods last November. In September 2015, Rhodes Food Group announced the acquisition of a General Mills South African unit that supplies frozen and dry-mix bakery products to the convenience sector. A month earlier, Rhodes Food Group’s move to buy fellow South African food company Deemster received the all-clear from the country’s competition watchdog.
