Invenfin, Remgro’s strategic venture capital and private equity investment arm, is taking a 30% stake in South Africa’s Dynamic Commodities, a specialist producer and exporter of frozen fruit-based delicacies based in Coega outside Port Elizabeth. The financial terms of the deal were not disclosed.
Stuart Gast, Invenfin’s Executive Director who led the transaction, will be taking a board seat as part of the deal. The decision to invest in the company was motivated by the quality of the owner-management team, the company’s product range and operational capabilities as well as the growth potential of the global market for frozen desserts.
“With 95% of its revenue from exports, Dynamic Commodities is poised to grow significantly with the rise in global demand for frozen desserts and fruits,” he said. “The current global market for ice-cream alone is $50bn and growing, and the frozen fruit market is also showing exciting growth.”
Described by its owner-managers, Adrian Vardy and Manie Maritz, as “a 20-year old overnight success story”, Dynamic Commodities now employs between 900 and 1,200 people at its state-of-the-art production facility in Coega. The company buys over 10 million kilograms of fruit annually from local farmers and pack-houses, making it a significant player in the Eastern Cape’s agriculture market, and exports its range of fruit products to the USA, Canada, Japan, Korea, Australia as well as a number of European countries.
Dynamic Commodities can look forward to some significant strategic and management support from its new partner. Invenfin’s food division typically provides investee companies with financial, marketing and strategic business support to help expand their presence in domestic and international markets.
“The partnership with Invenfin will allow us to enhance our strategic thinking, expand infrastructure, and strengthen our new product development processes,” Dynamic Commodities CEO, Adrian Vardy, was quoted as saying. “Invenfin’s marketing and branding expertise was also a key factor for us.”
Dynamic Commodities joins a number of food companies in Invenfin’s stable which include BOS Foods, De Villiers Chocolate and Le Bonbon, a handcrafted sweet and snack company.
Cliffe Dekker Hofmeyr provided Invenfin with legal advisory services on the transaction. Dynamic Commodities was advised by Johannesburg-based Prinsloo Tindle & Andropoulos.