Rhodes Food Group to acquire Ma Baker Pie business

South African company Rhodes Food is set to acquire KwaZulu-Natal based producer Ma Baker for R212m ($15.7m), in a move to bolster its presence in the country’s growing pie and pastry market.

This will be Rhodes' eighth and the largest acquisition since it was listed in 2014, with purchases collectively totalling R900m.

Paid in cash, the acquisition is subject to a due diligence process and competition approval.

Rhodes Food Group chief executive officer Bruce Henderson said: “Ma Baker is a well-established brand and a market leader in KwaZulu-Natal.

"The acquisition will strengthen our position in the pie market, as well as diversifying our customer base and our geographic presence.”

Established in 1987, Ma Baker produces pies, pastries and snacks from its manufacturing facilities in Pinetown and Pietermaritzburg.

Over the last two decades, it has seen economic growth and acquired two regional competitors.

Ma Baker's products are sold and distributed across the country through its distribution centres in Johannesburg, Bloemfontein, Port Elizabeth and Cape Town.

The acquisition is a part of Rhodes Food's strategy to strengthen its presence in the existing product categories and foray into complementary products.

In 2004, Rhodes Food entered into the pie market and sells a range of pies and pastries under its Magpie and Saint Pie brands. 

It manufactures its products at its facility in Aeroton, Gauteng, as well as produces goods under a private label for Woolworths and Corner Bakery.