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RMB Corvest is a private equity partner that commands an authoritative track record in the field. “We favour long-term partnerships so as to generate both stability and profit, whilst providing informed support,” notes Geoff Wilmot, executive: RMB Corvest. “Our experienced executive team holds diverse skills, enhancing all our dealings.”
Roos Foods is a leading KFC franchisee in South Africa, having achieved considerable growth under founder, Selwyn Schaffer. One of the initial KFC franchisees in the country, Schaffer opened his first store in Middelburg in 1977. At present, Roos Foods holds a portfolio of 71 stores in a network spanning Mpumalanga, Limpopo, the North West and Gauteng.
“RMB Corvest has invested in quick service restaurants previously, which allowed the immediate identification of the quality of Roos Foods,” outlines Phumi Twantwa, executive: RMB Corvest. “The business has focussed on smaller towns and rural areas, allowing it secure market share by often being the first quick service restaurant in the areas in which it operates.”
Gabby du Plessis, CEO: Roos Foods notes, “In having been developed over time across key towns as well as rural areas, the business holds additional competitive edge regarding strategic geographical spread and economic diversification.”
These qualities continue to provide resilience in the face of any localised challenges, whilst the overall business has proven defensive regarding the broader economic headwinds experienced generally over the recent past in South Africa. “Significantly, whilst Roos Foods continues to trade well in the current tough macro-economic environment, its position as a consumer-facing food business will benefit it disproportionately when the cycle ultimately turns,” adds Wilmot.
Crucially, existing management will form part of the current transaction and will consequently hold a material interest in the business. “The experience held by the team is of considerable value,” notes Twantwa. “We are ultimately backing management in this investment, appreciating the exceptional track record they have delivered to date.”
“As management, we are exciting to be partnering with an experienced investment firm to build on our strong foundations and support our long-term growth plans,” says du Plessis. In addition to management, the acquiring consortium is complemented by Iron Bridge Capital, a private investment holding company operating in South Africa.