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VENTURES AFRICA – JSE-listed food retailer, Taste Holdings, on Wednesday said it had acquired a small chain of eateries, Zebro’s Chicken, for R17 million ($1.5m).
Taste said this acquisition is part of the company’s strategy of buying businesses that have “critical overlap with the group’s existing vertical integration capacity in both manufacturing and distribution.”
The food firm said its strategy also involves acquiring additional brands that target consumers in the LSM 4-6 category to add to the more than 300 stores of The Fish & Chip Co. business.
The acquisition’s actual date of operation is 1 March this year and all conditions have been met, Taste said.
Launched 15 years ago, Zebro’s Chicken is situated mainly in the Western and Eastern Cape Provinces of South Africa with 40 branches.
It is a chicken retailer of its kind in the South African market, preparing its products over an open fire like a South African ‘braai’.
It has always targeted mainly the lower income consumer (Living Standards Measure “LSM” 4-6) through low prices and large portions.
The brand could be expanded to other parts of South Africa as the current footmark only operates in the Western Cape and the Eastern Cape.
Taste said it is expecting a faster store expansion because of Zebro’s similarity to its existing The Fish & Chip Co. operations.
The R17 million purchase price will be paid by a mixture of cash and vendor- placed Taste shares.