Bragan Chemicals acquired by Rolfes Holdings.
Rolfes has indicated that it will raise an additional R145 million, which will result in its empowerment status changing. It will reportedly place 45 million shares with the Masimong Group , a wholly-owned subsidiary of an existing Rolfes shareholder. Rolfes will also issue 3.3 million shares to Eziko Investments , an associate of non-executive director Dinga Mncube.
In a released statement, Rolfes explains the rationale for the deal and the share placement is to expand its empowerment credentials, while giving it a firm footing in the food, beverage and pharmaceutical sectors. Its strategy is built on the global need for food, agriculture, water , industrial products , and infrastructure development in domestic and foreign emerging markets. Growth will be achieved through its continuing acquisition drive into related markets.
Rolfes will fund the acquisition through an equal combination of debt and equity funding. The share placement will be used, in conjunction with debt facilities, to fund the deal as well as some other smaller acquisitions currently in the pipeline. The placement will increase Rolfes empowerment holding from 27 per cent to 49.6 per cent.
Changes to the board of directors will take place with immediate effect:
Erhard van der Merwe, chief executive of Rolfes Group since 2007 will relinquish his role as CEO. He will continue as a director in an executive role responsible for corporate finance activities and special projects.
Lizette Lynch, Rolfes group finance director has been appointed as chief executive officer.
Siegfried Alfred Sergel has been appointed finance director. He joins the company from Nedbank Business Banking, where he was a specialist finance senior transactor in leveraged debt transactions, M&A and unsecured cash lending.
As a strategic partner in various markets, Rolfes Holdings (Rolfes) has further expanded its portfolio through the acquisition of Bragan Chemicals (Bragan) forR213.1 million. Bragan is an importer and distributor of chemicals used in the food, beverage, bakery , pharmaceutical and cosmetics industries. The company has an extensive customer base, in excess of 200 companies, including major local and multi-national food manufacturers.
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