Hedderwick is back in the game
WHEN Kevin Hedderwick stepped down as CEO of Famous Brands, he wasn’t sure what he would do next, but he had no intention of taking it easy.
He was strategic adviser of the group for a year after he relinquished the top job and in that time guided it through purchases in manufacturing to help bolster the back end of the business, and cemented some key deals, including buying Gourmet Burger Kitchen in the UK.
The role as strategic adviser came to an end in March, but Hedderwick wasn’t interested in spending his time on leisure activities.
He doesn’t play golf or fish; he’d spent his early life in the trenches at Distillers Corporation and then SAB before moving to build Famous Brands into the foremost casual dining and food franchise business in South Africa — from a company with an R80-million market capitalthis isation when he joined it to one worth R14-billion when he resigned as CEO. He’s a hands-on person, and couldn’t imagine his life “just as a nonexecutive”.
Brian Joffe and Hedderwick got together to chat about a new business venture — but a back injury put paid to him being on the board at the time of the Long4Life listing in April.
Joffe listed the new business after his own rather short attempt at retirement. And in spite of much political uncertainty at the time, the company had a successful debut on the JSE, purely on the back of Joffe’s involvement and reputation as an arch-dealmaker. GOOD NEWS: Kevin Hedderwick, former CEO of Famous Brands, joined Long4Life this week, prompting a 10% jump in its share price
Hedderwick came on board week.
Long4Life will target lifestyle businesses run by entrepreneurs across a range of sectors with a focus on brands and businesses that are scalable.
A report by Vestact this week noted that Long4Life is 10 times bigger in market capitalisation than Basil Read — “In fact, Long4Life is bigger than Basil Read and Group Five put together,” it said.
News that Hedderwick had joined the company boosted the share price more than 10%.
“I need to be intellectually challenged and business is in my blood,” said Hedderwick. “I’ve been on my back for six weeks because of a back injury and had time to consider a range of opportunities.”
For him, it’s about being involved with people and brands. “There’s nothing more rewarding than helping a young person take a business forward. I don’t think you can put an age on it, though — like seeing Natasha Sideris of Tashas . . . we helped her realise her dream. And I found the Aaron brothers in their 60s running Turn ’n Tender, which we helped grow significantly. Age is not the issue. It’s whether the brand is scalable, if it’s got consumer equity and is the chemistry right — are they great people to work with?
“I’m a highly competitive person and by nature, I have always tried to compete to win.”
Joffe and Hedderwick, who sound like they’re on the same page, sit with a relatively small fund in a listed vehicle of R2-billion.
“What we’d like to see is to find either gems of people who’ve got wonderful ideas and how we can take those ideas to the next level, or find small companies and make them into medium or larger companies, or find bigger, good companies and make them great. And have fun doing it.”
Hedderwick remains a nonexecutive director of Famous Brands.
“My relationship continues with the company and I’m delighted to stay with the business that consumed 17 wonderful years of my life and where I enjoyed every moment.”
So what’s different this time around?
“When I arrived at what in those days was Steers Holdings there was no real agenda. We had a business and the plan was to evolve over time.
“If you look at Long4Life it’s an opportunity with Brian with a very clear agenda, and he’s also an ambitious man by nature.”
When Hedderwick joined Steers Holdings it was very informal. “They were brave enough, though, to bring someone from the outside in.”
Now, he said, it was about having experience and knowledge around the table.
“For me, I’ve always said I believe that business is about people, process and culture. I firmly believe in the saying ‘Culture eats strategy for breakfast anytime’.”
So how do Joffe and Hedderwick differ?
“I think I could bring a certain calmness to the relationship,” said Hedderwick. Both have many years in business, “he on a far bigger scale”, he said of Joffe. “We both have this energy and appetite to grow businesses
There’s nothing more rewarding than helping . . . take a business forward Long4Life is an opportunity with Brian with a very clear agenda
and to win.”
The first deal for Long4Life is nearly done. The due diligence into Sorbet is complete and the sale agreement is being finalised “and hopefully we can conclude that within the next two or three weeks”.
Since the listing, a number of organisations have approached Joffe. “We’re working through those assets one at a time,” said Hedderwick. Comment on this: write to letters@businesstimes.co.za or SMS us at 33971 www.sundaytimes.co.za