Brian Joffe's Long4Life to buy South African drinks maker Chill Beverages
Brian Joffe's investment firm Long4Life has agreed to buy Chill Beverages for at least 452 million rand in cash and shares, Long4Life said on Tuesday.
Joffe, former chief executive of the conglomerate Bidvest , listed Long4Life in April and has since made a string of acquisitions, including sporting goods retailer Holdsport and beauty chain Sorbet.
Chill, whose brands include energy drink Score and tonic Fitch & Leedes, has a manufacturing plant in Stellenbosch, around 50 km from Cape Town.
The company is currently owned by management and unlisted firms Africa Beverage Venture and Raubenbel.
Long4Life will pay a minimum of 452 million rand for Chill, but the purchase price could rise to as much as 734 million depending on how profitable the beverage firm is in the year to the end of June 2018.
The deal will be settled 75 percent in cash and 25 percent in new Long4Life stock at a price of 5.21 rand per share.
"This acquisition is an exciting opportunity for us to enhance our presence in the growing South African beverage space, which we see as an important component of the lifestyle, wellness and leisure sector," Joffe said in a statement.
Long4Life shares rose more than 6 percent after the announcement, but pared gains to 2.9 percent at 4.55 rand by 10:32.