Brian Joffe’s South African investment firm Long4Life has agreed to buy Chill Beverages for at least R452 million ($33 million) in cash and shares, Long4Life said on Tuesday.
Joffe, former chief executive of the conglomerate Bidvest, listed Long4Life in April and has since made a string of acquisitions, including sporting goods retailer Holdsport and beauty chain Sorbet.
Chill, whose brands include energy drink Score and tonic Fitch & Leedes, has a manufacturing plant in Stellenbosch, around 50 km from Cape Town.
The company is currently owned by management and unlisted firms Africa Beverage Venture and Raubenbel.
Long4Life will pay a minimum of R452 million rand for Chill, but the purchase price could rise to as much as 734 million depending on how profitable the beverage firm is in the year to the end of June 2018.
The deal will be settled 75% in cash and 25% in new Long4Life stock at a price of R5.21 per share.
“This acquisition is an exciting opportunity for us to enhance our presence in the growing South African beverage space, which we see as an important component of the lifestyle, wellness and leisure sector,” Joffe said in a statement.
Long4Life shares rose more than 6% after the announcement, but pared gains to 2.9% at R4.55 by 0832 GMT.
($1 = R13.73)