South Africa’s Clover Industries receives $358.2m buyout offer
February 5, 2019
South African dairy and beverage company Clover Industries has received a buyout offer from investors led by Israel’s Central Bottling Company (CBC) that values the firm at ZAR 4.8 billion ($358.2 million).
The acquiring group, operating as Milco SA Proprietary, offered ZAR 25 a share for the Johannesburg-based firm.
Milco is 60% owned by CBC subsidiary International Beer Breweries, with other investors including IncuBev, Brimstone Investment Corporation and the executive management of Clover.
CBC manufactures and distributes Coca-Cola branded soft drinks beverages in Israel and is the owner of Tara Dairy.
Shares in Clover increased by more than 20% on Monday after the buyout offer was announced. The company’s segments include: dairy fluids, dairy concentrated products, ingredients, non-alcoholic beverages and fermented products.
Employing more than 8,500 people, Clover’s footprint extends across South Africa and sub-Saharan Africa.
Milco said it believes that Clover presents a “uniquely attractive investment given its expansive chilled distribution capability, strong market position for key brands and an experienced management team”.
Milco intends to combine its capabilities with those of Clover to unlock value through key strategic initiatives, primarily aimed at accelerating sales, distribution and efficiency opportunities within Clover’s product portfolio in South Africa, with expansion into select sub-Saharan Africa territories.