Phatisa, through its Food Fund 2 – together with Sabvest, Masimong Chemicals and Rolfes management – have acquired the entire issued share capital of Rolfes Group (JSE:RLF), thereby delisting the business from the Johannesburg Stock Exchange to unlock new growth opportunities.
Established in 1938, Rolfes is a supplier of agricultural, food, industrial and water chemical management solutions and services for both the South African and international markets. The company’s divisions include:
Agricultural – Rolfes Agri develops, manufactures and distributes products that promote plant root and foliar health, soil nutrition, disease prevention, as well as various other agricultural remedies for the farming sector.
Food ingredients – Bragan Chemicals is a specialist supplier of ingredients and commodities to the food industry.
Industrial chemicals – Rolfes Chemicals distributes an extensive range of solution-focused industrial chemicals and services.
Water – Rolfes Water provides total industrial water management solutions, including specialised water purification solutions and products to the industrial, home and personal care markets.
With a projected global population increase to 10 billion people by 2050, Rolfes caters for the ever-increasing food security, water treatment and manufacturing demand.
Phatisa Food Fund 2, a successor fund to its first food fund (African Agriculture Fund), considers investments throughout the food value chain, including mechanisation, agricultural inputs, poultry and meat production, food processing, fast-moving consumer goods, logistics, aggregation, distribution, wholesale and retail. The fund provides a balanced blend of private equity and development finance, striving to build sustainable assets and communities, while ensuring the best possible returns for investors.
Rinolan Moodley, Partner at Phatisa, commented: ‘We see tremendous growth potential in Rolfes and this take-private transaction unlocks latent value within the group, allowing management to focus on private equity aligned growth targets. We look forward to partnering with our co-investors and a highly capable management team.’
Richard Buttle, Rolfes CEO, said: ‘We have chosen to partner with Phatisa, as they are likeminded investors who have a proven track record of investing and growing businesses across Africa. The Rolfes management team has demonstrated incredible grit over the past few years and we are looking forward to embarking on our next chapter as we continue building a market leading business.’
Eugene Stals, Chief Investment Officer at Phatisa, added: ‘As a specialist investor within the African food value chain, Phatisa is well placed to further propel Rolfes’s growth across the continent. The transaction is aligned with our investment model of backing passionate management teams and leveraging our deep sector expertise to add value and implement focused impact initiatives.’
The transaction has received all regulatory approvals.