St Pie

Rhodes Food Group buys pastry-pie maker Saint Pie for R20m

Saint Pie, set up in 1994 in Lydenburg, 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 and enable it to extend its pie business operations by adding this additional well-established pie brand. The acquisition would also result in customer and geographic diversification.

The deal will see RFG pay R20m for Saint Pie, plus the company’s R7m in liabilities.

RFG, which listed on the JSE in February, already had a pies and pastries facility based in Aeroton, Gauteng, which produces a range of pastry products under its Magpie brand. In addition to this range, RFG also produced pies and pastries under a private label for Woolworths and  Corner Bakery from its Groot Drakenstein factory, previously Wonderland Foods.

“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”.

Saint Pie is expected to generate about R60-million in revenue in its current financial year to end September 30 and R4-million in earnings before taxes, interest and amortisation during this period.

See more at St Pie website: www.stpie.co.za

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