The South African food producing company is also set to acquire immovable properties owned by Boland Properties.
“The board of RFG is of the opinion that the acquisitions present an attractive investment opportunity which is aligned with RFG’s strategy of expanding its business by means of vertical integration and lateral extension into product categories complementary to its current product ranges,” it said.
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“The acquisition of the immovable properties owned by Boland Properties is strategic, as the business of Boland Pulp is conducted from these properties.”
Boland Pulp, which conducts its business from Wellington in the Western Cape, produces and distributes fruit and vegetable concentrates and purees in the South African, African and international markets.
“Rhodes Food will acquire the business assets of Boland Pulp for an aggregate cash consideration of 101 million rand, plus the value of the trading stock, capped at 50 million rand as at the effective date,” [DATA RFG:Rhodes Food] explained.
“The seller, Boland Pulp, will retain all liabilities. The effective date is the first business day after the last day of the month during which the last of the conditions precedent is fulfilled or waived.”
The company added that it would acquire the properties from Boland Properties for an aggregate cash consideration of seven million rand, exclusive of value-added tax.
Deemster conducts a canning and bottling business in Bethlehem in the Free State and its products include canned vegetables and bottled salads and pickles such as beetroot and gherkins.
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“[This] offers the opportunity for Rhodes to enter into these new categories. It primarily co-packs products for third party brands and produces private label products for most South African retail groups, including Pick ‘n Pay, Spar and Woolworths,” said Rhodes Food.
“Rhodes Food will acquire the business assets of Deemster from Deemster for an aggregate cash consideration of 10 million rand plus the value of the trading stock, capped at 15 million rand as at the effective date.”