Rhodes Food Group, the JSE-listed company in which private equity investor Capitalworks holds a 25% stake, announced its latest acquisition last week – a R212 million (approximately $15.7 million) deal for Ma Baker, a KwaZulu-Natal producer of pies, pastries and snacks. Additional terms of the deal were not disclosed.
The transaction is the eighth and largest deal undertaken by Rhodes Food Group since it listed in 2014. Ma Baker, which was established in 1987, has expanded organically and via two acquisitions to post revenues of R248 million (approximately $18.3 million) with an EBITDA of R24 million in its last financial year.
Rhodes Food Group’s strategy is to complement its organic growth with acquisitions of food producers which will strengthen existing product categories or enable it to enter adjacent categories. The company already produces a range of pies and pastries under the Magpie and Saint Pie brands as well as producing private label products for Woolworths and Corner Bakery.
“Ma Baker is a well-established brand and a market leader in KwaZulu-Natal,” said Bruce Henderson, Rhodes Food Group’s CEO. “The acquisition will strengthen our position in the pie market as well as diversifying our customer base and our geographic presence.”