South African food and industrial group AVI has reached an agreement to acquire Denny Mushrooms for R197,5-million rand, less all interest-bearing debt as at the effective date.
Denny is a producer of fresh, canned and value-added mushroom products in South Africa, with a market share exceeding 50%. It operates from three mushroom-growing facilities in Gauteng, KwaZulu-Natal and the Western Cape.
The acquisition includes Denny’s subsidiary Dining In, which produces and markets value-added soups and sauces packed in pouches, cans and glass for leading South African retailers.
Denny’s annualised turnover is about R250-million.
The acquisition of Denny is in line with AVI’s strategy of growing its range of branded consumer products. More specifically, AVI is keen to expand its “fresh to market” product offering in well-known brands, the group said in a statement.
Denny is a strong national brand in South Africa with a 40-year history of producing high-quality mushrooms. The acquisition is subject to Competition Commission approval. — I-Net Bridge