Bidcorp teams up with Puratos

Bidcorp made a relatively low level announcement two days ago, one that possibly has further reaching implications in time. The SENS announcement is as follows: BidCorp Food Africa and Puratos establish a joint venture. Who are Puratos? As they say in the release, this is a bakery solutions business. I snooped out their website a couple of days ago, Puratos (a Belgian based business) supplies chocolatiers, bakeries and patisseries with ingredients. In other words, in the busy lives of a bakeries, you need and want a proper partner to deliver your key products on time and make sure that they are of a very high standard. Puratos supply everything from glazes to fillings, emulsifiers (not the favourite of everyone), bread improvers and the like. Good looking bread is sometimes better tasting bread, is that right?

This is just the South African businesses getting together, with the possibility to expand and partner together globally. I guess. Bidcorp's business here is previously well known to all and sundry as Chipkins, and has a long history here in South Africa, nearly 100 years. Nowadays is it referred to as the Bidcorp Food's Bakery Solutions Division (BBS). For Puratos, this gives them a wonderful opportunity to find a reliable partner on a continent that has loads of potential. The combined entity here will now be known as Puratos Chipkins. Food is an emotive issue for many, most especially those who may be at the bread line.

Bernard Benson, the Bidcorp CEO is quoted as saying: "The proposed transaction provides BBS with an opportunity to grow its existing business and to develop new products and tailor-made solutions for the baking industry Employees will be exposed to new skills and job opportunities, innovative products and international best practices." Nice, good work. We really like this investment theme of food being made easier inside of urban living that has become tougher, from a time perspective. Whether the consumer wants more bread, more fresh fruit or vegetables, all neatly packed, fresh and healthy, that is what businesses like Bidcorp will deliver over time.

We continue to accumulate what we think is a fantastic opportunity. There will continue to be multiple opportunities in many geographies for the group to consolidate and follow the classic model of bolting on businesses that make sense, year in a year out.