South African private equity fund manager Kleoss Capital has acquired a significant minority stake in Real Foods, the multi-brand food group founded by Dean Kowarski in 2013. The capital will be used to help the health and wellness company execute its acquisition strategy in the natural food industry.
The transaction is being done via Kleoss Capital Fund 1, a R1.2 billion generalist fund which typically looks to invest between R50 million and R150 million in established companies. The fund manager’s investment policy also requires it to take a board seat on its investee companies.
In addition to capital, “Kleoss also provides another valuable resource,” commented Kowarski, “in that they proactively engage with their investments and businesses at a board and strategy level. So they add a wealth of expertise to our company that will be important to our planned expansion.”
Real Foods, which lists KAUAI, Nü Health Café and KOHU in its brand portfolio, also received an equity investment from Genesis Capital Partners in 2014, and has struck marketing and distribution deals with what it terms “like-minded partners.” These include being a nutrition partner for Gym operator, Virgin Active, as well being selected as a launch partner for Discovery Vitality’s Active Rewards Programme.
KAUAI, KOHU and Nü Health Café have 149 stores in South Africa, Namibia, Botswana, Mauritius, and Dubai. Kleoss Capital believes that the company is primed for rapid expansion, both domestically and overseas, as the natural food, health and wellness markets continue on their rapid growth trajectories.
Commending Real Foods’ entrepreneurial success, Hale Matsipa, Kleoss Capital’s CEO said “The strong management team at Real Foods has achieved an incredible amount in a very short time, and this has been a major factor in our decision to invest. But this is also a very attractive investment sector for us, and natural food and wellness is a unique subsector that targets an economically resilient and growing portion of the population.”
Source: africacapitaldigest.com, August, 14, 2016