Novitas Capital Advisors advises on the merger between Montic Dairy & Sonnendal Dairies to form the Sontic Group
The merger of these two major regional dairy processors forms a ZAR 1 billion business with major processing facilities and cold chain distribution in key coastal and inland regions across South Africa.
The companies have complementary product ranges – Montic is strong in commodities such as fresh and long-life milk, while Sonnendal is particularly strong in by-products such as yoghurt, cream and fresh juice. Together the companies offer a complete basket of dairy products and are a new national player in the South African dairy processing sector.
To fund Sontic’s growth strategy, Novitas also arranged R27 million in asset finance to expand the Group’s processing facilities.