VENTURES: Ascendis Acquires Efekto And Sportron For R260m
Recent Western Cape Business News
Cape Town-based Ascendis Health, the wholly owned health and lifestyle subsidiary of Coast2Coast Investments, had, along with existing management, acquired the Efekto business. The Landbank and Vantage Risk Capital, the BEE mezzanine financiers, provided part of the funding for the transaction.
The Efekto acquisition follows Ascendis Health’s recent acquisition of Sportron, the direct selling nutraceutical and beauty products business.
Ascendis Health is a significant player in the health and lifestyle sector with the following well known consumer brands in its portfolio; Efekto, Wonder, Natura, Sportron, Foodstate, Bioter Health and FitFlop.
The Efekto acquisition is Ascendis Health’s first foray into the home and garden category. To execute this transaction Ascendis partnered with the existing Efekto management team, some of whom have been in the business close on 30 years, with the long term aim of improving strategic, operational and leadership capacity.
Dr. Karsten Wellner, CEO of Ascendis Health, believes the existing Efekto and Wonder brand product portfolio offers huge scope for growth, ‘We have identified the home and garden sector as being fundamental to our future growth at Ascendis. Part of our strategy is to create vertical integration into the “best of breed” players within this sector via joint ventures and acquisitions. Efekto’s established history, product innovation, extensive product lines and excellent retail footprint meant they fitted our investment criteria in every sense. We are actively seeking further acquisition opportunities in the health and beauty sectors’.
Continual research and product development has been the cornerstone of the Efekto and Wonder brands and this is set to continue, ‘Efekto is poised to launch innovative new products, including solar powered gardening products, into the market shortly, ensuring the brand continues to grow its market share’ added Wellner.
Efekto is Vantage Risk Capital’s seventh mezzanine investment and the first one to be partnered with Coast2Coast. Vantage’s Managing Partner, Luc Albinski commented, ‘We are delighted to be partnering with a dynamic investment group like Coast2Coast. Efekto is a market-leading business with confident and clear growth plans. Efekto’s ambitions to expand into African markets such as Zambia and Ghana are of great interest to us as we expand our own African footprint’.
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