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Bounty Brands’ 4 buyouts bring listing closer

Bounty Brands, the consumer goods platform backed by private equity investment holding company Coast2Coast has reportedly made four buyouts recently totaling R1.2 billion in value, boosting the company’s revenues closer to its pre-listing goal of R5 billion and R1 billion in operating profit. Bounty Brands is aiming for a dual listing on the London and Johannesburg bourses during 2017.

The four acquisitions—food supplier Rieses Food Imports, refuse and carrier bag manufacturer Tuffy, household cleaning products distributor Goldenmarc and fashion brands distributor Footwear Trading—add to Bounty’s portfolio of niche businesses which are already delivering revenues of R3.2 billion and R500 million in operating profit for the three-year old company.

The new acquisitions will be placed in one of Bounty’s three operating divisions, (Bounty Foods, Bounty Home & Care and Bounty Wear), in order to leverage their integration and potential synergies with some of the related businesses the company has acquired. Among the deals undertaken last year were Bounty’s first international acquisition with a deal to buy Sonko, a Polish producer of rice cakes, rice groats and dry bread products, the acquisition of Liberty Foods, an all-cash deal for Annique Health & Beauty  and the acquisition of Musgrave Agencies, a designer, importer and distributor of quality apparel products.

Business Day reports Bounty CEO Stefan Rabe as saying that there is a healthy pipeline of potential acquisition opportunities for Bounty but that the firm would remain selective about which ones to pursue. Given the firm’s current size, potential acquisitions would need to be delivering EBITDAs in excess of R50 million in order to “move the needle”.

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