South Africa’s Rhodes Food Group is acquiring KwaZulu-Natal based pie producer Ma Baker for ZAR212m (US$15.4m).
The company said the move would strengthen its position in the country’s growing pie and pastry market.
Ma Baker produces pies, pastries and snacks. Last year, the group generated sales of ZAR248m and EBITDA of ZAR24m. It operates two manufacturing plants, one in Pinetown and the other in Pietermaritzburg.
Rhodes said it expects the acquisition to generate integration synergies with its own pastry operations. The company produces pies and pastries under its Magpie and Saint Pie brands as well as private-label ranges for Woolworths Holdings and Corner Bakery.
The deal is the eighth acquisition made by Rhodes since 2014, with other deals including the purchase of halal baker Alibaba Foods and General Mills’ South African unit, which supplies frozen and dry-mix bakery products to the convenience sector. Most recently, earlier this month, Rhodes said it plans to buy local spices and condiments business Pakco.
The acquisition, which will be settled in cash, is subject to a due diligence process and competition approval, Rhodes said.