Rhodes Food Group (RFG) has entered into an agreement to acquire 100% of Western Cape-based fruit juice manufacturer, Pacmar, by 01 April 2015.
Bruce Henderson, RFG CEO, says that this acquisition represents an attractive investment opportunity aligned with the company’s expansion strategy of lateral extensions into product categories adjacent to their current product ranges.
Rhodes expands its repertoire
“With two fruit plants situated in the Western Cape and Swaziland, RFG produces an extensive range of fruit purees and juice concentrates for the international beverage industry. This acquisition offers significant value to these products. We believe that positive synergies will arise from the acquisition and that RFG is well-placed to add value to the Pacmar business,” says Henderson.
Pieter Hanekom, who was the executive responsible for The Ceres Beverage Company for 13 years, and recently joined the RFG executive team, will lead the juice operation. The intention is for Carlo Marra, the current CEO of Pacmar, to stay on for a three-month handover period.
Perfecting their fruit juice products
Pacmar manufactures and distributes fruit juice products in the local, regional and international markets under various well-known third party brands, private label programmes and its own brands. The products include fruit juices and other beverages. Its own brands include Wilde, Amazing, Zing and Crystal Falls. Pacmar has extensive experience and technical expertise in both the fruit juice and flavour industries, enabling it to offer a specialised service to the industry and to continuously develop new products.
The acquisition is subject to regulatory and competition authority approvals and successful completion of the due diligence.