20 Aug 2022 Libstar spices up its pantry with Cape Foods purchase

Libstar Holdings has expanded its spices portfolio with the acquisition of Cape Foods. Libstar also owns the Cape Herb & Spice brand.

The deal was revealed in JSE-listed Libstar’s six-month results to 30 June, noting the transaction is in line with the company’s “strategy to grow its basket of non-commoditised food products in existing categories” and will provide “access to new markets and value-added products in the dry condiments category”.

The value of the acquisition has not been disclosed and it is expected to be finalised in November.

Founded in 2002 by Gerhard Martin, Cape Foods, based in Montague Gardens in Cape Town, is a manufacturer of branded and private-label herbs, spices and seasoning mixes. The business exports to around 30 countries, including the US and Canada, Australia, along with destinations in Europe, South America, Asia and Africa.

Earlier in the year, Libstar announced it had launched an incubator initiative called Libstar Nova – with its first acquisition being Umatie, an up-and-coming producer of baby food.

Libstar is also pursuing a sale of its household and personal-care division, as announced earlier in the year.

Normalised EBITDA rose 5.6% to ZAR471.4m (US$29.1m), while earnings per share came in at 12.6 cents. Headline EPS was 12.2 cents.

For the previous fiscal year to 31 December, Libstar reported revenue of R10bn, an increase of 7.1%, with volumes up 0.5% and a positive price/mix of 6.6%.

Normalised EBITDA climbed 2.4% to R1.1bn. EPS rose 112% to 70.4 cents and HEPS were up 18.8% at 80.4 cents.

Source: Libstar, News24.com, Cape Foods