Rhodes adds Ma Baker to list of acquisitions

RHODES Food yesterday bought pie maker Ma Baker for R212 million, its eighth acquisition since listing on the JSE in 2014, strengthening the groups position in South Africa’s growing pie and pastry market.

It has spent R900m on deals since listing.

“Ma Baker is a well established brand and a market leader in KwaZulu-Natal. The acquisition will strengthen our position in the pie market as well as diversifying our customer base and our geographic presence,” Rhodes Food chief executive Bruce Henderson said.

Rhodes entered the pie market in 2004 and the company produces a range of pies and pastries under its Magpie and Saint Pie brands at its facility in Aeroton, Gauteng. Rhodes also produces pies and pastries under private label for Woolworths and Corner Bakery.

“The acquisition will not only create integration synergies in

‘The acquisition will strengthen our position in the pie market and diversify our customer base.’

the pie business but also in the snacking and bakery operations with Alibaba Foods and General Mills SA which have been acquired by Rhodes over the past year. Alibaba Foods manufactures halaal Eastern snacks and General Mills produces dry and frozen bakery products,” said Henderson.

Ma Baker was established in 1987 and it has shown strong organic growth as well as acquiring two regional competitors over the past two decades. Products are sold and distributed nationally through distribution centres in Johannesburg, Bloemfontein, Port Elizabeth and Cape Town.

Rhodes Food reported a 54 percent increase in revenue to R2 billion in the six months to end March, while profit after tax was up 89 percent to R110m, during its interim results presentation in May.

Ma Baker generated revenue of R248m and earnings before interest, tax, depreciation and amortisation (Ebitda) of R24m in its latest financial year. The acquisition, which will be settled in cash, is subject to a due diligence process and competition approval.

Rhodes’s shares rose 4.88 percent on the JSE yesterday to close at R26.01.