Bidcorp, once a crown jewel in Bidvest armour, has — like an ambitious young adult who leaves the bosom of their parents’ love and care to seek his own path — thrived as a stand-alone company.
The unbundling of the food major from Bidvest in 2016 has achieved what it set out to achieve: unlock shareholder value and provide a “fair and objective’ valuation.
The food services group worth R90bn when it made its debut on the JSE in May 2016, is today worth R150bn — comfortably in the top 40 listed companies’ ranks on the local bourse. This as the share price grew from R270 nearly 10 years ago to R444.
The group’s sustained success since demerging from Bidvest is no doubt one of the highlights of Brian Joffe’s storied deal-making career.
The growth of the group’s market valuation since the unbundling validates Joffe’s decision to reject a takeover bid of the business 14 years ago — avoiding the temptation of a quick buck over long-term value.
It’s easy to forget that Joffe once toyed with the idea of listing the then Bidvest food business in London to unlock value. The idea was canned and despite deriving a large chunk of its revenues outside SA the group has retained its listing in Johannesburg. Joffe served as Bidcorp’s inaugural chair when it spun off from Bidvest — a diversified industrial group he founded and ran until 2016 after the demerger.
Bidcorp’s R90bn primary listing is still the JSE’s biggest since Vodacom’s mega 2009 initial public offering.
Two success stories, one shared DNA
Bidvest for its part is today worth R74.2bn with the company pursuing an aggressive international growth strategy via the recent purchase of Citron Hygiene, giving it a foothold in North America. Both groups have retained their acquisitive DNA since the demerger. Bidvest has concluded about 20 deals in the past two years.
Bidcorp, which accounted for half of Bidvest earnings when it was still in its bosom, has kept its listing promise to investors, pursuing both organic and acquisitive growth.
The company’s 2016 prelisting statement may best capture the value unlock it sought to achieve as a stand-alone company, with emphasis on enabling its management to unleash their entrepreneurial flair and take direct responsibility and accountability for the performance of the entity.
Berson steers a disciplined global strategy
Bidcorp CEO Bernard Berson has shown himself to be a strong, capable leader with great industry insights. Under Berson the company, with operations spanning 31 countries, has pursued a smart M&As strategy, focusing on bolt-on acquisitions and quick exits where things are not working out.
He said in his annual letter to investors that the group was on a strong footing to capitalise on growth opportunities.
“Bidcorp is stronger today than ever. Across our global footprint, we are positioned for continued growth and margin improvement. Some may still call our performance “predictable” — we view it as a testament to the clarity of our strategy, the quality of our people and the strength of our execution,” Berson said.
Key financial metrics point to Bidcorp’s resounding success over the past decade. Its revenue has grown from R140.5bn in the 2016 financial year to R235bn in the 2025 financial year. Shareholders have benefited from R21bn in dividends since 2016, excluding a 2025 final dividend. The group has reported return on funds employed of 53.4% in the period.
It has not hurt the group’s efforts that it packed its board with renowned businesspeople, known for their entrepreneurial acumen. The board, chaired by erstwhile Investec boss Stephen Koseff, still draws from the wisdom of Joffe.
“We will continue with our strategy of investing in bolt-on acquisitions when these make sense and enable us to achieve the kind of strong organic growth that underpins the prospects of our businesses and the group,” Koseff said in his annual letter to shareholders.
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