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Long4Life buys Inhle Beverages in R360mln cash and share deal

Long4Life has agreed to acquire Inhle Beverages from the Botha family and the firm’s management for a maximum consideration of R360 million or $27 million, subject to the satisfactory completion of due diligence requirements and gaining the necessary regulatory approvals.  The deal will be settled by a combination of cash and Long4Life shares, the latter based on Long4Life’s traded volume weighted average price in the five days prior to the acquisition’s closing date. This is the third transaction for the listed investment holding company, which was launched earlier this year by BidVest founder Brian Joffe.

Inhle Beverages was set up in 2003 since when it has expanded to become the second largest beverage co-packaging business in South Africa, employing some 300 people. Located in Heidelberg in South Africa’s Gauteng province, the firm provides canning and bottling services of both branded and private label carbonated soft drinks, energy drinks and natural mineral water to an established client base. Recently, the firm secured a licence to package alcoholic drinks and plans to enter the market for canned, already-mixed beverage products which has experienced strong growth in recent years.

“This acquisition fulfills the broad definition of our investment criteria in the leisure space,” said Long4Life CEO Brian Joffe. “It presents a strategic opportunity from which we can build a beverage business of scale, through both organic growth and bolt-on acquisitions. Immediate access to the largest market in the country as well as its proximity to surrounding
territories, positions Inhle extremely well from an expansionary point of view.”

Long4Life’s strategy is to invest in opportunities in consumer sector-oriented companies, or those having a lifestyle focus, which have attractive growth prospects and are led by strong, entrepreneurial management teams. In July this year, the investment holding company agreed to pay $9 million for Sorbet, a South African chain of beauty salons. The firm has also made an offer for Holdsport, a cash retailer selling sport, leisure and recreational merchandise across South Africa through the Sportsmans Warehouse and Outdoor Warehose retail chains.

Following the completion of the acquisition, both the Botha family and Inhle’s management team will continue to operate the business.


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