SOUTH AFRICA – South Africa’s Competition Commission has conditionally approved Roos Foods, leading KFC franchisee in South Africa to acquire 10 KFC franchised restaurants owned by Van Eeden Kitskos.
Roos Foods operates 71 KFC franchises, with its outlets located in Mpumalanga, Gauteng, North West and Limpopo provinces.
The KFC outlets primarily sell fried chicken pieces, chicken burgers, wraps, salads, sides, desserts, and beverages.
The Kitskos KFCs are also primarily involved in the operation and management of 10 KFC franchised restaurants under a franchise agreement with the KFC franchisor in South Africa.
According to Phatisa, the Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets.
Regarding public interest, the Commission imposed certain employment-related conditions in order to safeguard against any potential retrenchments that may arise as a result of the proposed transaction.
Roos Foods is an RMB Corvest portfolio company, following the private equity investor acquiring majority stake in the fast-food chain operator.
“RMB Corvest has invested in quick service restaurants previously, which allowed the immediate identification of the quality of Roos Foods,” outlines Phumi Twantwa, executive RMB Corvest.
“The business has focussed on smaller towns and rural areas, allowing it secure market share by often being the first quick service restaurant in the areas in which it operates.”
The private equity specialist has also 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.
RMB Corvest is an expert Private Equity (PE) partner, favouring long-term partnerships that generate both profit and stability.
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