Redsun Dried Fruit & Nuts (Pty) Limited

Company description

The world’s raisin production is approximately 800,000 tonnes per annum and is dominated by the USA, Turkey and Iran. South Africa has an average production of 40,000 tonnes per annum and is the 5th largest producer in the world but has always been in the niche position of being regarded as a producer of high quality raisins for export markets. 

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The chief executive of Redsun is Peter Kuilman who has been in the export raisin processing industry and dried fruit and nut industry for 17 years. Peter was a co-owner and managing director of Kalahari Raisins, the second largest export raisin processing company in South Africa. When Kalahari Raisins was bought out by a Canadian private equity company, Peter was forced to exit which created the opportunity for him establish Redsun with Conexus.

peter-kuilmanRedsun has its own state of the art processing factory in Keimoes. The factory is being run by an accomplished team with substantial experience and knowledge of the local grape-farmers who produce the raisins and are key supplier to Redsun.

Peter’s relationships with both these suppliers and international customers ensures that the factory is run at capacity and Redsun has a significant market share of the South African raisin industry.

  Peter Kuilman
  Chief Executive

Investment Logic

red-sun-buildingThe Redsun investment appealed to Conexus as Redsun was in the unique position of having its costs denominated in Rands whilst receiving revenues in foreign currency, creating a natural Rand hedge and opportunity to benefit from higher equivalent foreign prices.

Furthermore, the business displays defensive qualities based on food production and can facilitate meaningful gearing because of the relatively short cycle of production (8 months). Redsun’s independence from a major food producer and good relationships with both suppliers and customers, avoids unnecessary overheads which translates into substantial margins.

An opportunity arose to sell Redsun to an American based private equity fund called One Thousand and One Voices (1K1V) and 1.5 x money was realised.

For more information on Redsun, please visit their website.

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