Rhodes Food Group buys R200 million pie maker

Cape Town – Rhodes Food Group (RFG) [JSE:RFG] has agreed to buy a Pietermaritzburg pie making factory for R212.24m.

The company, Ma Baker, was founded in 1987 in Pietermaritzburg and has grown rapidly since inception, said RFG in a statement on Monday.  

“Its products are sold and distributed nationally to major retailers, independents and convenience stores through its distribution centres in Johannesburg, Bloemfontein, Port Elizabeth and Cape Town,” it said.

“Its well-established Ma Baker brand is market leader in KwaZulu-Natal,” it said.

It said the acquisition presents an attractive investment opportunity which is aligned with RFG's strategy of expanding its business operations through value accretive acquisitions.

“Rhodes Food has a well-established pies and pastries business, producing a range of pastry products under its Magpie and Saint Pie brands from its facility in Aeroton, Gauteng,” it said. “Rhodes Food also produces pies and pastries under private label for Corner Bakery and Woolworths.”

“The acquisition will further strengthen Rhodes Food's position in the pie market by adding another well-known pie brand to its range as well as diversifying its customer base and geographic presence,” it said.

It believes the acquisition will create meaningful synergies in the pie business and the snacking (Alibaba Foods) and bakery (General Mills SA) operations that were bought in the last year.

Ma Baker made earnings before interest, tax, depreciation and amortisation of R23.7m for the year ended February 28 2016.

The sale ends Ma Bakers' own acquisition journey. In 1995, Ma Baker amalgamated with Country Home Bakers and in 2007, it bought Ballards Pies, based in Pinetown. Ma Baker now has two manufacturing plants in Pinetown and Pietermaritzburg.