Saint Pie deal will add to RFGs existing pie operations

Saint Pie deal will add to RFG's existing pie operations

South Africa's Rhodes Food Group is to buy pastry and pie maker Saint Pie in a ZAR27m (US$2.2m) deal.

Saint Pie, set up in 1994, is a producer of pastry products, mainly savoury pies, and distributes to fuel station forecourts, food retailers and independent outlets throughout South Africa. It has distribution centres in Lydenburg, Pretoria and Welkom.

RFG said the acquisition would allow it to add to its existing pie business. It already has a pie and pastry facility in Gauteng that makes products under its Magpie brand. It also makes private-label products for South African retailer Woolworths Holdings.

The deal will see RFG pay ZAR20m for Saint Pie, plus the company's ZAR7m in liabilities.

"The acquisition will also result in a customer and geographic diversification," Rhodes said. "The board of RFG is of the view that good synergies will arise from the acquisition".