STEENBERG-based private equity company, Coast2Coast Investments, has racked up R1bn annual acquisitions, and is set to list its core health care investment on.
This is a remarkable achievement for Coast2Coast, which was only established in 2005 by CEO Gary Shayne and COO Cris Dillon.
The initial focus has been on businesses in the consumer products sector - notably foods, personal care, health and homecare products. Success in these endeavours has led to the formation of a potent combination of diverse health care investments under the Ascendis Health banner.
Last month Ascendis continued its acquisition spree by purchasing skin care specialist Solal and a major stake in pet health brands supplier Marltons in deals with a combined value of R300m. Coast2Coast emulates the investment style of legendary investor, Warren Buffet (the sage of Omaha,) investing in businesses that are resilient, own strong brands and management teams and are highly profitable. Significantly, the key executive managers and shareholders of both Solal and Marltons will join the Ascendis team – which is in keeping with Buffett’s strategy of retaining great management after investing into their brands. The Solal and Marltons deals followed hard on the heels of acquisitions of well-established health care brands like Nimue, SSN, Efekto, Sportron, Avima and Chempure.
Shayne reckons Coast2Coast has moved into its preferred acquisition space, “which is to be able to complete transactions in the billions rather than millions.” Coast2Coast has also just signed two new deals worth R400m in the complimentary medicines and pharma space. The group expects to finalise these transactions ahead of the planned listing of Ascendis Health on the JSE. It appears Ascendis could be generating annualised turnover of more than R1,5bn at the time of listing. If the acquisitions referred to above are brought to book the company’s turnover at listing may range between R1,8bn to R2bn.
Ascendis could raise as much as R400m in fresh capital when its lists. Coast2Coast has already tested investor appetite for Ascendis when it held a small private capital raising exercise in June, which was reportedly more than 200% over-subscribed. CBN understands a number of prominent Cape Town business personalities are already invested in Ascendis.