Long4Life has acquired the entire issued share capital of Inhle Beverages, a well-established contract packaging business in South Africa, for a maximum purchase consideration of R360m.

The purchase consideration will be settled through a combination of cash and Long4Life shares, the latter based on Long4Life’s traded volume weighted average price (VWAP) in the five days prior to the closing date.

Located in in Heidelberg, Gauteng, Inhle specialises in the canning and bottling of carbonated soft drinks, natural mineral water and energy drinks.

Established in 2003 with one production line, Inhle is today the second largest beverage co-packaging business in South Africa with seven production lines, and with considerable scope for expansion. 

It employs around 300 staff and undertakes co-packaging on behalf of an established client base, which have all been growing respective volumes at a steady pace over the last few years.

Inhle is a family-owned business and the existing shareholders, the Botha family, and its management team will continue to be employed in the business.

Brian Joffe, Long4Life CEO, commented: “This acquisition fulfils the broad definition of our investment criteria in the leisure space. It presents a strategic opportunity from which we can build a beverage business of scale, through both organic growth and bolt-on acquisitions.

“Immediate access to the largest market in the country as well as its proximity to surrounding territories, positions Inhle extremely well from an expansionary point of view,” he added.

The acquisition of Inhle will “provide a solid and strategic platform from which a beverage cluster can be created within Long4Life, including an opportunity to build a beverage business of scale through both organic and acquisitive growth”. 

Inhle recently secured a liquor licence (for packaging purposes), representing an additional industry opportunity to expand and grow Inhle’s presence in the beverage sector.

The co-packaging on behalf of Inhle’s clients will initially be focused on canned, already-mixed beverage products, which has seen strong growth over the last few years.

Chris Botha, Inhle Director, added: “The overriding benefit of this acquisition is that it positions Inhle for its next exciting growth chapter.” 

“As a family-owned business we have certain constraints, but partnering with Long4Life and being able to access its funding capability, as well as the vast entrepreneurial knowledge and experience of its team, allows us to better position ourselves for the future and, therefore, take advantage of the significant opportunity that exists in the rapidly growing beverage industry in South Africa.”