SOUTH AFRICA – Kelpack Manufacturing, a contract food manufacturing and packing company in South Africa has sold a significant minority stake to Legacy Africa Capital Partners (LACP).
Kelpack manufactures food products on behalf of its clients, packs and supplies the products according to the agreed quantity and date of delivery.
The company’s packaging capabilities include portion packs such as single-serving butter and condiments; liquid filling for items such as honey and tomato sauce; sachets, strip packs, bulk packs and pouches for powdered products; and tubs and canisters for seasoning and spices.
Some of the leading companies leveraging Kelpack’s full-service solution include Bokomo, Tiger Brands, KFC and Bidvest, among others.
The investment undertaken through the Legacy Africa Capital Partners Fund I (LACP Fund I), is anticipated to assist the Pinetown-based business to capitalise on the growth potential afforded by its strategic position close to the Port of Durban as well as its solid existing customer base and international certifications.
“We are excited to partner with Kelpack and its strong management team. We were particularly attracted to Kelpack because of its strong offering to blue chip multinational companies as well as the opportunity in building a strong core black management teak in Kelpack, unlocking huge potential for the business,” said Boitumelo Mashilane, Principal at LACP.
LACP is a highly regarded South Africa-based private equity firm. It is a key supporter of small-and medium-sized enterprises in Africa and seeks opportunities in segments often overlooked by traditional large financial institutions.
The transaction also provided debt funding for a management buy-in of an additional 22%.
A new management team has been established, which includes newly appointed CEO Patrick Sithole, along with two current Kelpack Manufacturing employees.
This kick-off a leadership take-over from current CEO Garth Jones to Sithole, with Jones retaining a board seat.
“I am thrilled to be a part of the Kelpack family and appreciative of the welcoming atmosphere I have enjoyed from top leadership as well as staff.
“I’m excited for a future in which we will grow our domestic footprint through our new alliance, by strengthening our customer relationships, creating exciting new products, and continuing to offer our high-quality products to the market,” said Sithole.
With the transformed management team at the helm, the company’s B-BBEE credentials will unlock a new potential client base. This could lead to faster growth and, ultimately, more employment opportunities.
“Kelpack Manufacturing is proud to announce its partnership with Legacy Africa Capital Partners, which will enable the company to transition from Level 2 BEE compliance to Level 1
“Kelpack is now a truly South African balck-owned, black-run company employing 600 people with blue chip multinational food companies as its customers,” says Jones.
Part of the shareholding was acquired from One Africa Capital and FyreFem Fund Managers, which invested in Kelpack in 2020.