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Old Mutual buys significant minority stake in In2Food

In the second deal in as many months for its R4 billion fourth fund, Old Mutual Private Equity has acquired a significant minority stake in In2Food, a convenience food manufacturing business based in South Africa. In December, OMPE acquired a 70% stake in MoreCorp, the South African Golf and Cycling retailer, in another bet on the resilience of the country’s upper middle class in the face of the current economic downturn.

“We are excited to partner with In2food’s founders, fellow shareholders and management who have built a wonderfully successful business” commented OMPE investment principal Mohsin Cajee. “We are pleased to invest in a sector directly linked to the consumer food market with relatively defensive characteristics.”

While terms of the deal were not disclosed, Bloomberg reports that OMPE paid between R200 million and R600 million for the stake, taking the total amount of capital deployed from its fourth fund to just over the half-way mark. The capital will be used to help the company expand its customer base both domestically and overseas.

In2Food was formed in 2010 following the merger of Interfruit and Lombardi Foods, two home-grown South African family businesses. Since then the firm has undertaken an aggressive acquisition campaign, adding six companies to the group, which had a turnover of R1.7 billion or $101 million in 2014, operating production facilities in South Africa and Brazil.

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