June 17, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

EXEO Capital has announced that its Agri-Vie Fund I has exited from its 62.7 percent stake in Cape Olive Holdings, one of the largest table olive suppliers in South Africa, selling its stake to Imibala, a subsidiary of the Lona Group and co-shareholder in Cape Olive. 

The Fund originally invested in the company in October 2013, stating that it identified key growth opportunities in the retail and food service sectors. 

At the time, Izak Strauss, partner and co-founder, Agri-Vie said,  “The emerging economies of sub-Saharan Africa are also driving up demand for condiment olives from hotels and restaurants, as well as food services producers and retailers in the region. Agri-Vie as major shareholders will strategically support the company’s expansion in the export market to Africa.”

Today, Strauss noted how the investment has been very positive for the business.

“Agri-Vie was a stable majority shareholder in Cape Olive for eight years,” said Strauss. “The involvement of Agri-Vie enabled Cape Olive to expand on essential capex, increase its capacity to process a higher percentage of its crop for the table olive market, and increase efficiencies. During this period Lona also acquired 100 percent of Imibala.”

Olive trees first came to South Africa in 1661 when Jan van Riebeeck planted two olive trees on his farm Booschheuvel in the Cape. Today, the Western Cape accounts for more than 90 percent of the estimated 1.6 million trees owned in the country. 

Despite the olive industry of South Africa being rather new compared to Mediterranean countries where the history of olive cultivation dates back for millenia, the Western Cape region is one of the top olive producing regions in South Africa with more than 300 growers.

The Western Cape climate, much like the Mediterranean with hot, dry summers, and cool, wet winters, is well-suited to the cultivation of olives, which are harvested between the deciduous fruit and grape harvests – making them a natural filler crop for the region’s farmers. 

However, Agri-Vie says it is time to part ways with the company.

“The reason for the sale is that Agri-Vie Fund I has reached the end of its life after 12 years and is completing the exits from the last of its investments,” said Strauss. “The return on the investment was in line with our expectations.”

Richard Allen, CEO of Cape Olive, also commented on how much the company has benefited from its partnership with Agri-Vie, including Izak Strauss and Dave Douglas, who were Agri-Vie’s representatives on the company’s board, saying, “The Cape Olive management team has benefited greatly from their experience and intellect. The encouragement and support from them and the broader Agri-Vie team, have been the distinguishing features of their tenure as shareholders in the business.”

Strauss added that as markets begin to gain a sense of normalcy, Cape Olive is poised for a bright future.

“The company is a market leader with a strong brand Buffet Olives and an integrated supply chain,” said Strauss. “It enables them to provide a consistent supply of high-quality table olives to its customers. Cape Olive has also opened up export markets to neighboring African countries.”

This exit from Cape Olives is the latest in a string of recent exits for Agri-VIe Fund I, which exited its investment in South Africa’s HIK Abalone Farm. selling its stake to African Pioneer Group after a partnership lasting eight years. 

More recently, in February of this year, the fund divested its stake in InteliChem, a leading provider of crop solutions for a wide range of crops – selling its holding to Masimong Group Holdings after an investment period of six years. 

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.