The Rohatyn Group (TRG) has signed a deal to exit its stake in a South Africa-based consumer beverages company to a strategic player that is based in India.
The investor is exiting The Beverage Company (BevCo), alongside Nedbank Private Equity to Varun Beverages (VBL), an India-based consumer beverages company.
TRG inherited the deal when it acquired Ethos Private Equity in 2023. Ethos had invested in the company in 2018 alongside Nedbank.
The investor is exiting the company one year after inheriting the deal, and a total of six years including the Ethos holding period. Nedbank is also exiting the company after a six-year holding period.
BevCo was created following the acquisition of SoftBev, a South Africa-based beverages company by Little Green Beverages (LGB) in 2018. The transaction was funded Ethos and Nedbank Private Equity.
LGB acquired SoftBev from Bowler Metcalf, a South Africa-based industrials company. Bowler Metcalf sold its 41.38% stake in SoftBev for a minimum consideration of approximately $19.4 million (R233 million). The final pricing was determined based on earnings before interest, taxes, depreciation, and amortization (Ebitda) figures for the year ending June 2018.
The investor had structured the deal through Ethos Fund VI, closed at $800 million R8.4 billion in 2013.
During the investor’s holding period, the company increased the number of employees by approximately fourfold. Additionally, BevCo grew its gross sales, reaching approximately 63 million cases per year.
“Since 2018, the number of total employees at the company has increased nearly four times, and the company reached gross sales of approximately 63 million cases per year,’’ said Jonathan Matthews, partner at TRG. ‘’The product offering also expanded, adding the manufacturing and distribution of PepsiCo brands in the region. The company has achieved growth through innovation in its products and services, regional expansion, and a focus on sustainable business practices.”
Glynn Potgieter, managing director at TRG, and board member of BevCo worked on the deal.
Headquartered in Johannesburg, BevCo produces and distribute beverages for consumers across South Africa.
The company produces a number of different flavored, carbonated soft and energy drinks.
BevCo has its own brands and energy drinks, as well as franchise rights from PepsiCo in South Africa, Lesotho, and Eswatini, and distribution rights for Namibia and Botswana.
The company operates five manufacturing facilities across South Africa with an installed capacity of 3,600 bottles per minute (BPM).
Created in 2018, the company is headed by chief executive officer Peter Spies and employs over 440 people, as of 2024.
Webber Wentzel and Nortons acted as local legal advisers for TRG on this transaction.
Rand Merchant Bank acted as financial advisor to TRG on this deal.
