Sakhumnotho Group Holdings (“SGH”) is pleased to announce the acquisition of Pakworks Proprietary Limited (“Pakworks”) (the “Acquisition”) together with management, a company indirectly majority-owned by AFGRI Group Holdings.
Pakworks was founded in 2000 when Paul Grobler founded the company as a joint project with Simba. In 2000, Simba made the strategic decision to transfer Heilbron’s peanut and Chipnick business to local management under Paul Grobler, who was then in charge of Simba Isando and the Heilbron plant.
In South Africa, Pakworks manufacture Nik Naks, Doritos, and Simba peanut variations on behalf of Simba, a wholly owned subsidiary of PepsiCo. Pakworks is the largest co-manufacturer in South Africa and the 2nd largest in the AMEA region. The company produces two million packets of Nik Naks per day.
Pakworks sources the finest raw ingredients from trusted South African suppliers and adheres to strict food safety regulations and quality control systems throughout the manufacturing process to create amazing snack products that are always fresh and full of flavour. The focus is on operational and organizational expansion, as well as strengthening its position as the leading employer in the community.
SGH identified the Pakworks asset as a priority follow on investment in the sector. The intention of the Group is to build scale in the food processing sector (and agriculture as a whole) regionally, nationally and across the African continent.
The Transaction will result in Sakhumnotho Group holding 85% in Pakworks with Jan de Beer retaining 15% in Pakworks.
Jan de Beer will remain as CEO of Pakworks and the company will look to enhance its BEE rating.
Prof. Sipho Mseleku, President and CEO of Sakhumnotho Group Holdings, said on the agreement, “The acquisition aligns perfectly with our objective of extending our investment portfolio. It gives us a presence in what is becoming an increasingly growing food segment. The demand for convenient snacks is increasing due to changes in social and economic patterns and increased expenditure on food and beverages. As one of the prominent players, we intend to focus on expansions and mergers as strategies to cater to the increasing demand from consumers. This will give us a competitive advantage in the market.”
According to Jan de Beer, “I believe that the new partnership with Sakhumnotho will further strengthen and enhance the relationship we have built over many years with PepsiCo. Sakhumnotho’s BBEEE credentials together with a depth of business management resources and expertise will be a great enabler to continue the growth of the business. Together with Sakhumnotho, the Pakworks team will continue to focus, not only on sustainable business performance but also on embracing our social and environmental management obligations”