AVCA | British International Investment (“BII” - formerly known as CDC Group), Norfund, and Finnfund invest into South African integrated food Business, Lona Group
Summary
More recently, it acquired a majority stake in the Unlimited Group an integrated producer, packer, processor, exporter and importer of fresh fruit, vegetables and nuts.Established by CEO, Spencer Johnson, in 1996 from his fathers garage, Lona now exports c. 5 million cartons of citrus, in addition to a significant volume of other fresh produce each year predominantly to the UK and Europe, North America, the Middle East, Asia, and increasingly to the rest of the African continent. Beyond its farming and packhouse operations in the Western and Eastern Cape, Mpumalanga, Limpopo and Zimbabwe, Lona has developed some of the most advanced automated cold storage facilities on the continent. These provide Lona and their third-party customers with a state-of-the-art and efficient cold chain, thus ensuring fruit has a longer shelf life, and reducing food waste.It is envisaged that the consortiums expansion capital will be used to further improve Lonas facilities, particularly the building of new packhouses, orchard netting to protect crops from adverse weather, the development of new innovative fruit and value-add products, as well as making the business more climate resilient whilst reducing its carbon footprint.The investment led by Phatisas US$143 million Food Fund 2 comes a week after Phatisa announced its successful exit from C\xf4te dIvoire bottler Continental Beverage Company, and its investment into animal vaccine manufacturer, Deltamune, early this year.Growing from humble roots, Spencer and his team have built an impressive business, which Phatisa has been attracted to for some time. Their integration from producers to buyers is remarkable and means that fruit is carefully handled within the strictest standards, resulting in superior quality and reduced wastage, added Phatisa Senior Associate, Ryan Burns.While the decision to seek expansion capital to grow Lona was relatively easy, finding the right business partner, who shared our passion and values, was more challenging. We are confident that Lona Groups deep market knowledge and strong growth track record, will help to strengthen the food value chain, and increase productive and inclusive economic opportunities for low-income workers, particularly women.