Remgro acquires 30% of Dynamic Commodities
REMGRO’S growth capital division Invenfin announced yesterday that it had acquired 30 percent of Dynamic Commodities, a specialist producer and exporter of a range of frozen fruit delicacies, for an undisclosed amount.
Over the past 20 years, Dynamic Commodities, an Eastern Cape company based in Coega, has become a leading exporter of an innovative, value-added range of frozen fruit products, including fruit sorbets and various cut frozen fruits, to countries such as the US, Canada, Japan and South Korea.
Invenfin said the decision to buy the stake at Dynamic Commodities was based on a unique high quality product range, the growth potential of the global frozen desserts market and the efficient combination of excellent production capabilities.
Frozen dessert Stuart Gast, an executive director of Invenfin, said: “With 95 percent of its revenue from exports, Dynamic Commodities is poised to grow significantly with the rise in global demand for frozen desserts and fruits.
“The current global market for ice cream alone is $50 billion (R723bn) and growing, and the frozen fruit market is also showing exciting growth. With its focus on adding significant value to locally farmed produce through its delicious range of specialist products conceptualised and produced at its plant, Dynamic Commodities matches what Invenfin looks for in a partner.”
Invenfin, with a strong backer like Remgro, has the financial muscle to back small companies that show potential. In March last year, Invenfin also announced it had acquired a 20 percent stake in South African social enterprise platform WyzeTalk.
Other food companies Invenfin has partnered with include BOS organic rooibos ice tea, bean-to-bar chocolate specialist De Villiers Chocolate and Le Bonbon, a handcrafted sweet and snack company.
One of Dynamic Commodities’ unique products is its fruit sorbet in a fruit shell, which generates significant export revenue and sells in the USA under the Island Way brand. The company said all products were produced from locally sourced fruit at the company’s state-of-the-art 9 600 square metre production facility in the Coega IDZ.
Invenfin’s Foods Division provides financial, marketing and strategic business support to owner run food and beverage companies that show the potential to increase their local and international footprint through the offering of authentic consumer products.
Dynamic Commodities chief executive Adrian Vardy said: “In global terms, we are small but we take pride in competing with the biggest companies in our international markets,” he said.
“The partnership with Invenfin will allow us to enhance our strategic thinking, expand infrastructure and strengthen our new product development processes. Invenfin’s marketing and branding expertise was also a key factor for us.”
Dynamic Commodities said they supported local farmers by sourcing the fruit required for their products from them.
Remgro shares fell 1.02 percent to close at R257.31.