RCL Foods has signed a binding sale agreement with Simrose Overseas S.A. to acquire Martin & Martin for R695 million (US$38 million). The deal remains subject to conditions precedent, including approval from relevant competition authorities.
Martin & Martin produces wet dog and cat food, biscuits, treats and pet care items sold under brands including Husky, Pamper, Beeno and Bob Martin.
RCL Foods' current pet portfolio is primarily focused on dry food. According to the company, the proposed acquisition would expand the company's presence in wet food, biscuits, treats and pet care segments and add branded products to its portfolio.
"This acquisition represents an exciting opportunity to broaden our participation in the pet food category and accelerate our presence in high-growth segments where we currently have limited exposure," said Paul Cruickshank, CEO of RCL Foods. "By bringing together the complementary capabilities of RCL Foods and Martin & Martin, we are positioning ourselves to deliver greater innovation, relevance and value to customers, while building a stronger, more sustainable pet food portfolio for the future."
Brendan Hayes, managing director of Martin & Martin, said joining forces with RCL Foods would mark a significant milestone in their company's journey.
"We are excited about the strong synergies this partnership would bring, enabling us to serve the market with a broader range of innovative products," said Hayes. "For our customers, this would translate into enhanced value and a shared commitment to quality and the future of the pet care category.
"Furthermore, by leveraging RCL Foods' extensive expertise and central business resources, our team would have greater opportunities to grow, innovate and thrive within a larger, more diversified group. We look forward to this next chapter and the collective success it would bring," Hayes added.
Martin & Martin will continue to operate from its existing facilities following completion of the transaction. No job losses are anticipated, and no immediate changes for employees are planned.
