Consortium concludes Denny Mushrooms acquisition

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Denny is Africa's leading producer and marketer of fresh mushrooms.

Denny was bought from JSE-listed, fast moving consumer goods company AVI for a total purchase consideration of R263.5 million.

"Our rationale for the purchase centred around Denny being a market leading business with an established and robust track record, led by a highly competent management team," says RMB Ventures Justin Babaya. "A further catalyst for the transaction was that AVI had identified Denny as being non-core to its longer-term, more brand-centric strategy."

"The Pan-African team welcomes the opportunity of working with RMB Ventures and Denny management," says Pan-African Private Equity Fund 1 CEO Dr Zuko Kubukeli. "We believe we can add significant value to Denny, particularly by helping the company penetrate new markets in South Africa, thereby accelerating growth."

Denny CEO Roger Coppin said: "We welcome the deal which will bring new strategic horizons for what is a rather unique business."

RMB Ventures is the on-balance-sheet private equity arm of FirstRand Ltd. Pan-African Private Equity Fund 1 is owned by Pan-African Capital Holdings and invests in later-stage, scalable businesses with the potential to deliver superior longer-term returns. RMB, a division of FirstRand Bank, acted as senior debt provider and corporate finance advisor to the consortium.