While many companies are downscaling operations in the harsh economic climate, Coast2Coast (C2C)Private Equity recently purchased a R30-million stake in one of South Africa’s premier pie manufacturing and distributing companies, St Pie.
“Well-run companies with top class operations and a great product will always perform well, even in a difficult financial climate. As a low cost, popular fast food, pies are a wonderfully resilient product. St Pie is growing strongly, with over 20 percent growth in sales per annum, year-on-year for the last five years. This transaction is in line with our strategy of investing in FMCG companies in South Africa.” Cris Dillon, COO of C2C commented.
“The St Pie corporate culture and values are in line with those of Coast2Coast and we feel that this is a mutually beneficial transaction that has great potential.” Gary Shayne, CEO of C2C added.
St Pie started fifteen years ago from a small café and today manufactures in a ‘state of the art’ foods plant in Lydenburg. It distributes 19 frozen pie variants to their growing database of over 1500 retailers who bake the pies and sell them to the public.
From left: Wyk Geyser (MD of St Pie), Cris Dillon, Erick Geyser, Gary Shayne
Wyk Geyser, managing director of St Pie is equally positive. “After successful negotiations and getting to know the C2C team, we’re delighted that we have found a partner who shares our values and can offer us the stability we’d like.
“The transition into the C2C group has gone extremely smoothly and we’re excited at the prospects of this new partnership. We can now continue to expand strongly and we feel extremely fortunate that despite the difficult times the economy is experiencing, we’re still able to enjoy the fruits of a flourishing business,” says Geyser.
The decision to invest in St Pie was based on a thorough due diligence process, strong profitability and growth characteristics of the company. St Pie is the ninth investment made by C2C since it started in 2007.
St Pie’s financial performance has not been adversely affected by the current gloomy economic climate and continues to expand strongly. “There is a good structure in place, sound business principles and a proven formula to ensure St Pie’s products pies are always of superior quality. In any financial environment, people have to eat and everyone enjoys good value.” Dillon concludes.
