SOUTH AFRICA – Private equity specialist RMB Corvest has formed a strategic partnership with Mark Bowman, former Managing Director of SABMiller Africa to acquire equity interest in South Africa’s fast-growing energy drinks business, Switch.
Switch founded in 2011 by current MD, Christian Wentzel, who partnered with seed investors, the McKinlay family, manufactures and distributes a wide range of energy drinks.
Supplementary products linked to the label, including energy bars and syrups, have additionally been developed.
The business is headquartered in Woodmead, Johannesburg, with warehousing and contract packing undertaken in Heidelberg.
“Switch enjoys significant reach and has been steadily built into a reputable brand,” outlines Wentzel. “We are able to distribute throughout South Africa, including cross-border into neighbouring African countries and beyond.”
“Our growth prospects are both immediate and demonstrable,” says Wentzel. “We have already established a virtual platform via outsourced manufacture and transport, and we have unlocked a sector of the market otherwise considered near-impenetrable: overall, the business holds significant scalability.”
With brand awareness having been achieved through targeted customer interaction, the label has been mindfully positioned to grow more broadly across key markets.
“Strategically, the business operates in the informal consumer market,” said Menzi Khoza, Executive from RMB Corvest. “Consequently, the attractive customer base enjoyed by Switch is not easily accessible for many competitors. Moreover, as a strong brand in a bullish market segment, further opportunity with increased return is projected.”
RMB Corvest is an expert Private Equity (PE) partner, favouring long-term partnerships that generate both profit and stability.
“Our team provides informed support across all our holdings,” says RMB Executive, Brendan Wiebols. “We offer the benefit of being an experienced partner with whom to tackle the market, shifting focus from immediate earnings to long-term solutions.”
“Most attractively, we will be partnering a knowledgeable, hands-on management team with considerable skin in the game. The agile and innovative approach applied by management to both the brand and the product range is reflected in the track record of the company – we forecast yield exceeding our targeted returns,” concludes Wiebols.
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