| Fri 18 Mar 2005, 11:29 | | FAMOUS BRANDS ADVANCES STRATEGY WITH ACQUISITION O |
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FAMOUS BRANDS ADVANCES STRATEGY WITH ACQUISITION OF TRUFRUIT
Johannesburg, Thursday, 17 March 2005: Famous Brands has acquired a 100% interest in the business of Trufruit (Pty) Ltd (“Trufruit”), a manufacturer of fresh and pasteurised premium fruit juices, for an undisclosed consideration. The transaction is subject to satisfactory conclusion of a due diligence investigation.
This acquisition is a further milestone in achieving the group’s stated objective of becoming an integrated food and beverage company using its platform as the leading branded Quick Service Restaurant franchisor in Africa.
Based in Baynesfield in KwaZulu Natal, Trufruit was founded in 1994. The company currently supplies products to three of Famous Brands’ operations, namely Steers, Debonairs Pizza and FishAways, which comprises roughly 30% of its gross revenue. Trufruit’s target sectors are: food services, hospitality catering, and recreation. It is anticipated that the business will contribute approximately 5% to the gross revenue of the group’s food services division.
Kevin Hedderwick, Famous Brands Chief Operating Officer says: “This investment underpins our strategic intent to use our extensive franchise network base to become an integrated food and beverage supplier via reverse integration of our supply chain.”
He adds: “With this acquisition Trufruit’s market share will be enhanced via access to the other brands in our portfolio, namely Wimpy, Whistle Stop, House of Coffees and Brazilian Coffee Shops. However, growth will not only be limited to Famous Brands’ franchise network. The intention is to grow Trufruit’s existing business to other food services vendors in the hospitality and leisure sector as well,” notes Hedderwick.
The Trufruit plant comprises modern manufacturing facilities designed to produce fresh and pasteurised fruit juices in a variety of pack sizes and flavours. The fruit juices are preservative free and the pasteurised products have a guaranteed shelf life of 12 months.
The company employs 35-45 staff, depending on the season. Fruit is sourced predominantly from the Natal Midlands citrus areas, the north and south coasts of KZN, and when necessary, from other regions in South Africa.
Hedderwick notes that the incumbent management will be retained for a minimum period of five years. Evan Antel, founder of the business and Juice Master, will continue to head up operations.
“This transaction will enable Trufruit to realise its full potential as a leading brand in its niche market,” comments Antel.
Hedderwick says: “Our philosophy of investing in premium brands is exemplified by the Trufruit acquisition, given its credentials as a respected supplier with strong growth potential.”
Hedderwick concludes: “We will continue to evaluate similar opportunities with other vendors, and anticipate that there will be further strategic transactions to follow.”
ends
NOTES TO EDITORS
§ Famous Brands’ portfolio includes: Steers, Wimpy, Debonairs Pizza, FishAways, House of Coffees, Brazilian, Whistle Stop and Pouyoukas Foods.
§ Famous Brands franchise network comprises 1 095 restaurants.
