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Annual turnover

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  • Mandate: 34374
  • Added: 12 Aug 2021
  • AFS
  • 692

Agri processing operation of edible oils

Limpopo, Limpopo
692
Mandate 34374
Added 12 Aug 2021
R 375,000,000* ZAR
Stock: R 10,000,000
Assets: R 438,000,000
R 388,333 ZAR
Arie Roos
(PRINCIPAL)
Aldes Longtom
Mpumalanga, Lydenburg
Mpumalanga, Lydenburg
Summary

End to end sunflower farms / press / refinery and bottling plant of edible oils and related products

SELLING PRICE AFS
R 375,000,000* ZAR
Stock: R10,000,000
Assets: R438,000,000
R 388,333 ZAR
Summary

End to end sunflower farms / press / refinery and bottling plant of edible oils and related products

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Fully describe the business's activities?
The Business operates within South Africa’s oilseed industry, with dedicated specialisation in manufacturing sunflower oil and oil-cake, and value chain participation in: o Crushing sunflower seed o Extraction of oils o Refining and processing sunflower oilseed into o Bottled Sunflower Oil for the retail market (edible) ( own branding ) o Bulk and Crude Sunflower Oil for wholesale market (edible), used by food sector industry, and blending into Vegetable Oil o Sunflower Cake for the animal feed industry o The Business has to date predominantly participated as a bulk supplier to the industrial food sector and related industries in South Africa.

How long has the business been established?
Since 2011

How long has the owner had the business?
The business is managed by the family of the deceased founder

How does the business operate on a daily basis?
The business is an owner-managed operation, encompassing end-to-end production cycle of sunflower farming to the selling of refined oil The seller is farming sunflower and is buying sunflower seed from producers in the province Sunflower then is processed in a specialised and purpose built sunflower oil refinery. The refined oil is sold in bulk , or bottled at the on-site bottling plant The business is doing their own logistics and distribution. Sunflower cake - a byproduct - is sold to feedlots

What competition exists?
The Business competes with producers of sunflower on the purchasing / supply side (for raw input – sunflower seed), The Business also competes with the producers of the refined product / market side (sales of finished product).

The financial background of the business
The business will be sold as by the sale of shares in the relevant PTYs The business is VAT registered and financial statements will be available during further stages of negotiations The annual turnover for 2020/21 was R 315 M There is a definite increase for the first 5 months of 21/22 due to 27.9% higher production an higher prices on both the refined oil and the sunflower oil cake

What is the total staff complement?
Roughly 100 local workers on-site, with various degree of skills.

How involved is the Owner in running the business?
The owners are involved in the control and decision making

Describe the location of the business
The sun flower oil refinery is located on a 70Ha rezoned portion of the larger farm ( 1350 Ha ) in the RSA The business is located within a sunflower production area Since the refinery is located on the farm of the seller , overhead costs are lower

What are the main assets of the business?
Large oil production refinery plant with a daily sunflower seed (boilerplate) crushing capability of 140 tons per day (current sustainable run rate closer to 110tpd). * State of the art bottling plant with PET blow moulders and labelling plant. * Machine shop and storage facilities to warehouse c. 1000 pallets. * On-site silo for 4,500 tons of sunflower seed storage. * The Business situated on carved out industrial rezoned land of roughly 70ha. * Weighbridge, and own trucks for distribution and logistics * 1350Ha farmland

How have they been valued ?
The farmland and the complete plant and related assets were professionally valued in 2018 at R 438 M ( R 35M land ) ( R 403 M improvements ) ( movable assets was not valued ) The replacement value was calculated at R 545 M

Strengths?
The Business’ end-to-end capability means it can flex margin between its crushing and refining processes to be able to compete on both fronts, depending on market dynamics Dominant regional player, with buying power, as it is the only Sunflower refinery within a radius of 300km Situated in the North of South Africa - closer to the SADC markets Uniquely situated with low overheads

Weaknesses?
Hi usage of electricity - technical knowledge of the plant is important

Opportunities?
General growth in Agri communities The refinery is operating below capacity South Africa will remain a net importer of sunflower oil The global demand for edible oils are growing year on year

Threats?
Global economic downturn

Why is this a good business?
An asset rich business, with solid financial and operational performance The business is operating in the agri- processing of edible oils and the byproducts of sunflowers South Africa is a net importer of sunflower oil and the global demand overshadow the supply

What is the price plus stock and the profit?
The farm , all improvements , movable assets , refinery and bottling plant is selling for R 375 M ( US$ 26.3 million )

Further conditions
The seller prefer to enter into negotiations with companies ( buyers ) who are already involved in the Agri Farming / processing sector , or the food processing and distribution industries Interested buyers will be closely screened by Aldes on behalf of the Seller

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AGENCY DETAILS

Aldes Longtom

2 members
31 mandates
Mpumalanga , Lydenburg
31 Fourie Street
Lydenburg
1120

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