The Rohatyn Group (“TRG”), a global asset manager specializing in emerging markets and real assets, has announced the sale of The Beverage Company Proprietary Limited (“BevCo”), a South African-based beverage manufacturer and distributor to India-based Varun Beverages Ltd (“VBL”), a leading bottler for PepsiCo.

BevCo was established in 2018 through the acquisition and merger of Little Green Beverages and SoftBev. The company has consolidated its position as the largest independently owned beverage producer and distributor in South Africa. BevCo has a wide portfolio of its own brands and energy drinks, as well as franchise rights from PepsiCo in South Africa, Lesotho, and Eswatini, and distribution rights for Namibia and Botswana. The company operates five manufacturing facilities across South Africa with an installed capacity of 3,600 bottles per minute ("BPM").

TRG Partner Jonathan Matthews commented, “Since 2018, the number of total employees at the company has increased nearly four times, and the company reached gross sales of approximately 63 million cases per year. The product offering also expanded, adding the manufacturing and distribution of PepsiCo brands in the region. The company has achieved growth through innovation in its products and services, regional expansion, and a focus on sustainable business practices.”

BevCo CEO, Peter Spies, said, “Management and shareholders had a clear long-term aspiration for the business and remained focused on accelerating the execution of new revenue streams and building scale, while retaining alignment with key stakeholders. The sale of BevCo to Varun Beverages has proven that scaled South African businesses have the potential to attract global trade players to the continent.”

Glynn Potgieter, Managing Director at TRG, and board member of BevCo, added, “The macro conditions in our markets continue to pose challenges to sale processes. We believe successful realization strategies require years of strategic planning and building businesses that have unique, identifiable, and realizable value to a known universe of acquirers. We are convinced that successful exit processes in these challenging markets require skilled negotiation, resilience, tenacity, and, above all, a collaborative mindset.”

About TRG

Founded in 2002, The Rohatyn Group specializes in emerging markets and real assets. Headquartered in New York, the firm is comprised of over 160 professionals based in 18 countries across North and South America, Europe, the Middle East, Africa, India, Southeast Asia, and Oceania.

In 2023, TRG acquired most of the business of Ethos Private Equity, a leading alternative asset management firm in Africa, strategically expanding capabilities in the region. Combining forces with Ethos positions TRG to deliver a larger array of investment solutions in emerging markets.

About Varun Beverages Limited

Varun Beverages Limited (“VBL”), is a publicly listed India-based company and one of the largest franchisees of PepsiCo outside the U.S. VBL is part of the RJ Corp group, a diversified business conglomerate with interests that include beverages, quick-service restaurants, ice cream, and healthcare amongst others.

TRG was advised on the transaction by Rand Merchant Bank, a division of FirstRand Bank Limited, Webber Wentzel, and Nortons Inc.

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