RMB Corvest in partnership with Agile Capital acquired a significant holding in local catering service provider, Feedem.
RMB Corvest, together with Agile Capital, invests in established businesses across Sub-Saharan Africa with proven track records. We focus on creating long-term profitable partnerships that are both stable and supportive, by partnering with Agile Capital and the management team, we have facilitated the creation of a Black-owned services enterprise and bolstered the existing management team with the appointment of Bazil Lauryssen as Chief Executive Officer. Feemed is more than 51% Black owned and more than 30% of the business is owned by Black Women.
Feedem is one of the largest independently owned service providers within the local outsourced catering industry, with more than 3200 employees managing over 260 sites. Feedem has a national footprint with offices in all major South Africa cities.
The enhanced Black Economic Empowerment credentials embedded within this deal provides access to new markets whilst strengthening and adding further value to existing contracts.
Agile Capital structured the deal through its R500 million fund. Agile’s CEO, Tshego Sefolo, has agreed to be Chairman of the Feedem Group Board and is joined by Londeka Shezi on the board. Genevieve Alberts and Phumi Twantwa will represent RMB Corvest on the Feedem Board.
Following the transaction Feedem will be owned by RMB Corvest, Agile Capital and the Management Team with the Founders holding a residual share in the business. Agile Capital recognises and supports BEE as an imperative, bringing together diverse skills to add value – thereby ensuring the holistic growth and invigoration of its targeted investment vehicles, whilst increasing returns.
The company further diversified through its acquisition of a synergistic cleaning services company, rebranded as Cristal Solutions, employing in excess of 600 people. Cristal Solutions offers a comprehensive range of cleaning, hygiene, pest control and labour resources and services to malls, corporates, business parks, hospitals, government facilities, factories and warehouses, and is ready for expansion having secured new contracts recently. This operation extends the reach and profitability of the overall business.
Using Feedem as a platform, we recognise the very real potential to develop a new multi-service group through both organic growth and further acquisitions. With our expertise in Private Equity, the liquidity we offer, and our experienced executive team bringing its diverse skills to this partnership, we view this transaction as a remarkable opportunity to make a significant contribution to the South African business landscape, by creating much needed employment, training and improvement to the quality of lives of our people.