Kleoss Capital, a South African100% black owned and managed investment manager, has acquired a significant minority stake in Real Foods, a multi-brand food group.
The acquisition was structured through Kleoss Capital Fund I, a R1.2bn generalist fund that targets South African businesses.
Hale Matsipa, Kleoss Capital CEO, said that the team at Real Foods has achieved an incredible amount in a very short time: “This has been a major factor in our decision to invest.”
Founded in 2013, Real Foods is owned by Dean Kowarski and Genesis Capital Partners.
Real Foods owns Kauai, NÜ Health Café and Kohu brands, which have over 100 stores in South Africa, Namibia, Botswana, Mauritius, and Dubai.
Matsipa said that natural food and wellness is a unique sub-sector that targets an economically resilient and growing portion of the population.
Matsipa was also excited about BEE transformation within Real Foods, adding that there is potential to introduce black controlled franchise stores within Kauai.
“This would be our modest contribution within Real Foods to creating black entrepreneurs through a franchise model, particularly amongst the youth. We have found Real Foods very receptive to our ideas around BEE transformation,” he said.
The investment will allow Real Foods to pursue exciting new acquisitions in the natural food industry.
Commenting on the Kleoss Capital’s capital injection, Real Foods Founder Dean Kowarski, said: “We realised that we had a partner that shared the values of transparency, authenticity and an entrepreneurial approach to our business that makes Real Foods such a strong leader in the health and wellness marketplace.” Source: Africa Global Funds