Bounty Brands Holdings Limited (“Bounty Brands”) acquires manufacturer of gluten-free products

16 November 2017Press Release

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

Bounty Brands (“the Company”), the fast moving consumer goods business with a portfolio of leading brands that are sold in over 40 countries, announces the acquisition of Bezgluten sp. z o. o (“Bezgluten”), a producer and distributor of gluten-free food products in Poland.

Bezgluten is the number two player in the gluten-free product segment in Poland and produces high quality specialty foods designed to enrich the diets of people suffering from coeliac disease and other gluten intolerances. It offers a broad range of products, including baked products (breads, rolls, cakes), pastas, flour and baking mixes, snacks, cereals and a variety of ready-made meals. Bezgluten employs 75 employees and owns a production facility in Posądza near Krakow. In the financial year ended December 2016, Bezgluten generated revenues of over PLN 22 million.

Bounty Brands’ initial focus will be on enabling Bezgluten to fulfil its growth plans, which include expanding its current sales channels and entering into new product categories and geographic markets.

The transaction marks Bounty Brands’ fifth major acquisition in Poland in the last two years. It follows the acquisitions of Sonko, the market-leading, value-added rice and healthy snacks business which was acquired in 2015 and Stella Pack, a major manufacturer and distributor of recycled refuse bags and other non-chemical household products acquired earlier this year. In October of 2017 the Company also announced that it had entered into a pre-sale agreement with Profi, a leading producer of pates and ready-to-eat soups, and earlier this month announced the acquisition of Unitop Group, a Polish manufacturer and distributor of sesame-based snacks and other confectionery goods.

Stefan Rabe, Chief Executive Officer of Bounty Brands, said:
“Bezgluten is an excellent addition to Bounty Brands’ portfolio of food brands. Not only is it a strong brand with unique products, but it also extends our presence in the fast-growing healthy food and snack categories. We are excited by its prospects as part of the Bounty group and will work with the Bezgluten management team to not only strengthen the brand in Poland, but also to help it enter new markets across Europe.”

Adam Pietruszkiewicz, Managing Director of Coast2Coast, said:
“The addition of Bezgluten to Bounty Brands’ already strong portfolio of food brands will enable it to continue its expansion of food activities in Central and Eastern Europe (“CEE”). Bezgluten is a recognisable brand with a strong market position in the growing gluten-free segment and a loyal customer base among coeliac sufferers in Poland. We look forward to continuing to support Bounty Brands as it pursues new investment opportunities in the region.”

The information contained herein is not for release, directly or indirectly, in or into the United States of America, Australia, Canada or Japan. This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (Securities Act), and may not be offered or sold in the United States unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.

Statements contained herein may constitute “forward-looking statements”. Forward-looking statements are generally identifiable by the use of the words “may”, “will”, “should”, “plan”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “goal” or “target” or the negative of these words or other variations on these words or comparable terminology.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause the Company’s or its industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.

Contacts:
FTI Consulting LLP
Edward Bridges/Nick Hasell (London) + 44 207 727 1000
Max Gebhardt/Caroline Parker (Johannesburg) + 27 11 214 2400
Anna Krajewska/Piotr Wojtaszek (Warsaw) +48 (22) 826 74 18

About Bounty Brands
Bounty Brands is a fast moving multi-national consumer goods company with a portfolio of leading brands that are sold in over 40 countries, mostly in the Southern African and Central & Eastern European regions. Its brands span a number of consumer sectors with the main focus being food, apparel and personal & home care. For more information visit www.bb.co.za

About Coast2Coast
Coast2Coast, a controlling shareholder in Bounty Brands, is an international private investment company operating in Europe, particularly in CEE, as well as in South Africa, Australia and New Zealand. It has offices in Warsaw, Prague, London, Malta, Johannesburg, Cape Town, Sydney and Melbourne. It is a value investor, using its own capital to finance investments. The group currently invests through three main investment platforms: Bounty Brands (FMCG), Maison Brands (homewares) and Ascendis Health (health and care). Coast2Coast specialises in long-term investments in family businesses, with growth potential. Coast2Coast achieves its vision by taking a semi-active ownership role in its portfolio of companies, and creating value for shareholders by partnering with management teams in order to improve strategic, operational and financial performance. For more information visit www.c2c.co.za.

About Bezgluten
Established in 2004, Bezgluten is a producer and distributor of gluten-free and low-phenylalanine food. The Company offers gluten-free products designed for people suffering from coeliac disease or gluten sensitivity. For more information visit www.bezgluten.pl

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