SOUTH AFRICA – Agri-Vie Fund II, a private equity fund and subsidiary of EXEO, has acquired a 36.5% stake in South Africa’s non-alcoholic beverage manufacturer, Jumbo brands.
Avril Stassen, Senior Partner at EXEO Capital, revealed that the firm has been eying investments into the Fast Moving Consumer Goods industry for some time now.
“The continued long-term growth potential of the sector, its defensive character, sound exit potential and scope to scale businesses to a regional level all bode well for a good investment opportunity.
We believe that Jumbo Brands is the perfect partner in this regard, having shown very strong growth in the last few years, particularly within the South African middle and upper-middle market segments,” he said.
Gustav Kraaij, Chief Executive Officer Jumbo Brands, said that the transaction with EXEO Capital will facilitate the transition of the family owned business into the current generation.
“We are excited to include EXEO Capital in the very successful partnership that we have had with Fanie Venter and Jose Frazao as we jointly pursue the growth opportunities of the beverage and snack markets.”
Fanie Venter, Chairman of the Jumbo Brands Group, said that the investment by EXEO will boost the company’s operations and expansion plan.
“While we are experienced with all aspects of operations, growth strategy and synergy extraction, EXEO Capital will play a major role in helping to identify and acquire compatible businesses as part of the company’s platform growth strategy.”
This comes at a time when beverage manufacturer recently acquired the Café Enrista instant coffee brand from a global manufacturer and has unveiled plans of commencing manufacturing through the brand in its Johannesburg factory.
Jumbo Brands was established in 1985 and has a strong focus on the manufacturing of fruit juice concentrates, squash, cordials, coffees, hot chocolate, and lemon juice.
The company also manufactures corn and pellet style chips and has brands that include Boston, Fruity Treat, Jolly Jumbo, Boost-A-Bag, and Fiesta’s.
Agri-Vie Fund II investments are mainly focused on food and agribusiness in Africa and has recorded major growth since 2017.
Other than Jumbo Brands, Agri-Vie has also holds stake in South Africa’s Dew Crisp, Fairfield Dairies, Intelichem, Cape Olive and Hygrotech, Ethiopia’s AfricaJuice, and African Spirit Group.