RMBadvisesonin2foodSaletoWoolworths

RMB acted as sole financial adviser to the shareholders of in2food, including the founders, management trust and Old Mutual Private Equity, on the sale of 100% of the business to Woolworths Holdings Limited.

The transaction delivers a full realisation for shareholders who have supported the business through three decades of growth, and positions in2food for its next chapter within South Africa’s premium food retailer, which it has served for more than 30 years.

In2food is a major South African food manufacturer that supplies fresh convenience foods, bakery items, and ready-made meals primarily to Woolworths South Africa. It generates revenue in excess of R5 billion per annum, operates eight world-class manufacturing facilities and produces over 3.2 million food packs weekly.

The challenge

in2food’s shareholders sought a full exit at a value that reflected three decades of investment and compounding growth, while preserving the important relationship with Woolworths, the business’s largest customer and its counterparty in the transaction.

The transaction also required alignment across various in2food shareholders, each with their own objectives, under tight timelines, while adhering to the governance, disclosure and conditionality standards applicable to a JSE-listed acquirer.

“Woolworths and in2food have an extended track record of close collaboration, focused on delivering high-quality, innovative food products aligned with Woolworths Foods’ premium positioning.” – Richard Cooper, CEO of in2food

RMB’s solution

RMB acted as sole financial adviser to in2food’s shareholders, leading the transaction across articulation of the investment thesis, valuation, due diligence and execution.

Drawing on deep food and retail sector expertise, execution excellence and established relationships on both sides of the table, RMB progressed the transaction from inception to signed agreement within a demanding timetable.

Results and benefits

Shareholders achieved a full exit, with the purchase consideration settled in cash and funded through a combination of Woolworths’ existing cash resources and financing facilities.

Continuity has been preserved where it matters most. in2food will continue to operate as a standalone business within Woolworths, led by Richard Cooper, Mohsin Cajee and the existing senior leadership team, retaining the entrepreneurial culture that has underpinned its success and the customer relationships that anchor it.

The transaction reinforces RMB’s position as market leader in the consumer-packaged goods (CPG) sector and as a long-term trusted adviser to in2food’s shareholders, including Old Mutual Private Equity.