SOUTH AFRICA – Bowler Metcalf, manufacturer and seller of plastics and plastic moldings has completed the sale of its 41.38% stake in SoftBev, a company engaged in the production, bottling, and marketing non-alcoholic beverage products in South Africa.
Upon the approval of the sale, Bowler’s share price finished 12.2% stronger at US$0.84 and that the final enterprise value of SoftBev would be determined by the actual profits achieved by the company for the year ending June 30 2018, reports Business Day.
According to Bowler, the minimum consideration for its shareholding would be about US$19.3m after various adjustments.
SoftBev was 100% acquired by The Beverage Company, parent of Gauteng and Eastern Cape-based beverage producer Little Green Beverages from JSE-listed Bowler Metcalf and the original founders.
Part of the sale will be used in expansion of the core packaging business and related property investments, as well as new business ventures that met the company’s strategic objectives while some will be used to pay shareholders in a cash dividend.
The acquisition, subject to regulatory and Competition Commission approval seeks to strengthen The Beverage Company’s objective of building a truly African business of home-grown beverage brands.
“The acquisition of SoftBev will enable us to offer a powerful, national brand portfolio to consumers.
It is our second acquisition towards realising our growth vision and will enable The Beverage Company to rapidly drive scale and efficiency.
We see many opportunities from this planned acquisition, with our primary focus being to provide a greater choice of brands and wider product range.
Furthermore, SoftBev trade relationships complement and augment our current footprint, coupled with the continuation of a committed partnership with Pepsi, means that we will be better able to serve consumers,” said Michael Benjamin, The Beverage Company CEO.
SoftBev, formed with the merger of Cape Town-based Quality Beverages and Durban-based Shoreline trades as Shoreline Beverages and has a strong presence in South Africa with its Refreshhh brand.