Sanlam head workplace in Bellville. Photograph: Gallo Photos // Jacques Stande

• Sanlam’s non-public fairness arm acquired Cullinan’s largest employer, Gauteng, by way of one in every of its impression funds launched final 12 months.
• He purchased a majority stake within the Cavalier group, which consists of 5 firms.
• This acquisition is a part of a course of of making or sustaining 27,000 jobs.

Sanlam’s non-public fairness arm has acquired meat producer and Cullinan’s largest employer, Gauteng, because it tries to ship on its 2020 promise to create or protect 27,000 jobs.

The insurer introduced on Tuesday that Sanlam Personal Fairness (SPE) had acquired a majority stake within the Cavalier Group of Firms for an undisclosed quantity.

The Cavalier Group is made up of 5 firms: Cavalier Meals, Cavalier Livestock, Cavalier Abattoir, Cavalier Feeders and the holding firm.

It’s one in every of solely two pink meat packers accredited by Woolworths in South Africa and employs 1,412 individuals, SPE mentioned in a press release.

The corporate mentioned it purchased stakes each from Land Financial institution, which was ready to promote its stake to an influence accomplice, but additionally purchased a stake from Griekwaland-wes Korporatief Bpk (“GWK”) .

Sanlam or any of its entities has not been within the enterprise of buying meals producers within the latest historical past of the corporate. Actually, through the years, the insurer has tried to deal with monetary providers, divesting its actual property portfolio, which included purchasing malls and purchasing facilities.

However in 2020, Sanlam Investments, the subsidiary that manages non-public fairness operations, launched three impression funds in June 2020 with a collective goal of making or preserving 27,000 South African jobs. The funding home dedicated R25 billion of its personal capital to seed the three funds.

The corporate aimed to achieve a complete of seven billion rand with the assistance of traders – billion rand for the SME debt fund, 3 billion rand for the company debt fund and three billion rand for the non-public fairness funds. The three funds, named the Buyers’ Legacy vary, share the frequent purpose of supporting firms negatively affected by Covid-19.

The acquisition of the Cavalier group of firms was aimed toward serving to the provider of premium pink meat merchandise finance the varied progress initiatives it has began to embark on, SPE mentioned.

“Our impression technique is to create jobs and empower deprived teams, with a deal with girls’s empowerment and youth unemployment. We additionally put money into companies that ship job progress to its staff in addition to alternatives to enhance their way of life, ”mentioned SPE Managing Associate Paul Moeketsi.

In December, Sanlam Investments additionally introduced that the SME Debt Fund had dedicated R10 million in debt reduction to a few South African firms that have been to protect 630 jobs and create 356 extra.

Moeketsi mentioned SPE plans to announce one other cope with the Buyers Legacy line-up non-public fairness fund within the coming weeks.