IFC mulls €20m loan to Bounty’s M&A war chest

January 16, 2017

The IFC is mulling a €20 million loan to Bounty Brands, the consumer goods platform owned by South African private equity investment holding company Coast2Coast. The debt will be used to support the company’s acquisition plans and regional expansion activities over the next few years in preparation for an eventual IPO.

According to the Summary of Investment Information published on the IFC’s website, Bounty Brands is looking to acquire food personal and homecare manufacturers in Central and Eastern Europe as well as in South Africa. The plans are a continuation of a strategy that has seen Bounty snap up a number of consumer goods assets in the past couple of years.

In June last year, Africa Capital Digest reported that Bounty had made four buyouts totalling R1.2 billion in value. The four South African acquisitions—food supplier Rieses Food Imports, refuse and carrier bag manufacturer Tuffy, household cleaning products distributor Goldenmarc and fashion brands distributor Footwear Trading—add to Bounty’s portfolio of niche businesses which are already delivering revenues of R3.2 billion and R500 million in operating profit for the three-year old company.

Among the deals undertaken in 2015 were Bounty’s first international acquisition with a deal to buy Sonko, a Polish producer of rice cakes, rice groats and dry bread products, the acquisition of Liberty Foods, an all-cash deal for Annique Health & Beauty and the acquisition of Musgrave Agencies, a designer, importer and distributor of quality apparel products.

Additional deals will be instrumental boosting Bounty’s revenues closer to its pre-listing goal of R5 billion and R1 billion in operating profit. It’s expected that the IFC’s board will meet in mid-February to review and approve the loan proposal. Source: Africa Capital Digest