Business

Owner of Ouma’s Rusks and other iconic brands buys another South African company for R695 million

Jonathan Hoyle

 ·25 Sep 2026

The Competition Commission has approved RCL Foods’ acquisition of pet food brand Martin & Martin, with conditions.

RCL Foods is a major manufacturer in South Africa, owning several well-known brands such as Ouma’s Rusks, Selati sugar, and Yum Yum.

Earlier this year, the JSE-listed company announced plans to purchase Martin & Martin for approximately R695 million in a joint statement.

RCL Foods CEO, Paul Cruickshank, said at the time, “This acquisition represents an exciting opportunity to broaden our participation in the pet food category and accelerate our presence in high-growth segments where we currently have limited exposure.”

The company already has a small share in South Africa’s pet food market, through its ownership of brands such as Bobtail and Canine Cuisine.

“RCL manufactures a range of branded products spanning both dog and cat categories, including dry food, wet food and treats,” the Competition Commission said.

“RCL’s pet food portfolio includes brands such as Bobtail, Canine Cuisine, Optimizor, UltraPet, Catmor and Feline Cuisine.”

Martin & Martin, the company behind brands such as Bob Martin and Husky, is a major player in the pet food and veterinary medication industries.

RCL Foods’ acquisition is subject to conditions to address both competition and employment concerns, including co-manufacturing agreements and a hold on any retrenchments.

“To address competition concerns, the merger parties have agreed to conditions requiring the merged entity to maintain existing co-manufacturing agreements,” the Competition Commission said.

The company must also “make available contract manufacturing capacity to third parties on fair commercial terms, keep the relevant manufacturing facilities operational for a specified period, and refrain from anti-competitive tying or bundling practices.”

“To address employment concerns, the merged entity shall not retrench any managerial employees or non-managerial employees for a set period of time from the implementation date.”

A hard year for RCL Foods

In its latest financial year, RCL Foods saw its revenue sink, resulting in its profit roughly halving year-on-year.

In 2025, the company reported a profit of R1.65 billion, which declined to R768 million in its latest financial year ended June 2026.

This represents a 53.3% decrease in profits, with the company’s basic earnings per share also dropping to 84.1 cents from 180.1 in the prior period.

The company also decreased its total dividend per share from 60 cents to 40 cents year-on-year.

RCL Foods chairman George Steyn said the company’s operating environment had been challenging over the past year.

“The 2026 financial year unfolded against a challenging consumer and operating environment,” he said.

“While lower interest rates and moderating food inflation offered some support during the year, they did not translate into a sustained improvement in consumer confidence.”

He also noted difficulties in the second half of the year, driven by inflationary pressures from high fuel prices.

“Against this backdrop, consumer spending remained constrained, and the trading environment was highly competitive.”

He said that the company’s acquisition of Martin & Martin would be an important part of its future growth.

“The transaction would broaden RCL FOODS’ participation in the attractive wet pet food and pet care category, adding established brands and complementary capabilities in wet food, biscuits, treats and pet care products,” he said.

“It is also aligned with the Group’s ambition to grow the value-added branded component of its portfolio.”

RCL Foods 2026 financial results