Long4Life's purchase of Chill set at R481 million
The purchase price of R481 million was based on actual ebitda of R92 million generated by Chill for the financial year ended June 30.
Acquisitive investment holding firm Long4Life has set the acquisition price of beverage producer, packer and distributor Chill Holdings at R481 million, the company announced on Monday. Long4Life, which was founded by respected businessman Brian Joffe (pictured), agreed to buy 100 percent of Western Cape-based Chill from senior management, African Beverage Ventures, and Raubenbel, in November 2017.
At the time, Long4Life’s said its ultimate purchase price of Chill would be determined by what the company makes in earnings before interest, tax, depreciation, and amortisation (ebitda) for the 2018 financial year. The purchase price of R481 million was based on actual ebitda of R92 million generated by Chill for the financial year ended June 30, 2018. Chill generated ebitda of R86 million in the 2017 financial year.
Of the R481 million purchase price, 75 percent was settled in cash by Long4Life and 25 percent in Long4Life ordinary shares.
Founded in 2001, Chill produces, packs and distributes drinks — including a portfolio of its own brands Score Energy, Fitch & Leedes, Bashews, and Country Club. It also bottles nonalcoholic and alcoholic drinks for companies such as Diageo, the company that owns brands such as Tanqueray, J&B, Guinness, and Smirnoff.
Africa Beverage Ventures and Raubenbel, the sellers of Chill, are private equity players who initiated an auction process.
Long4Life’s CEO Brian Joffe said at the time of the acquisition in November 2017 that Chill would enhance the company’s presence in the “growing South African beverage space.”
“We see the beverage space as an important component of the lifestyle, wellness and leisure sector, servicing a large part of the South African and African population,” said Joffe.
“Chill has a diverse product offering that caters to various LSM market segments. I am excited about the management teams’ ability to drive product and brand development, as well as positioning, and further advance the strategy of maintaining a good balance of branded products and co-packing arrangements.”
Long4Life – which Joffe established and listed on the JSE in April 2017 after stepping down as CEO of Bidvest Group – has been acquisitive, taking over beauty therapy specialist Sorbet, and retailer Holdsport, the owner of Sportsmans Warehouse and Outdoor Warehouse.
Long4Life also acquired Inhle Beverages, which is one of South Africa’s largest beverage packaging businesses.
It recently ditched plans to buy fast-growing shoe group Rage for R3.9 billion, which would have been Long4Life’s biggest deal to date. The Rage purchase was more than half of Long4Life’s own market capitalisation of R5.3 billion when the deal was first mooted in June 2018. The deal was canceled in August 2018 “by mutual consent”.