In a strategic move that offers significant growth opportunities for both parties, Sharon Bolel Chemical Marketing (SBCM) has been wholly acquired by CJP Chemicals, effective from 11 November 2011. On hearing this last year, Food Review spoke to someone from SBCM, however they declined to comment until now.
SBCM will retain its name and continue to operate from its premises in Meadowdale, Edenvale, as a separate division of CJP Chemicals. Sharon and Cyril Bolel and Jack Noble will continue to run the company in their existing executive capacities.
'CJP approached us in 2010 with a view to buying SBCM and negotiations were ongoing for many months. In that time we came to understand the strong synergies that exist between the two companies; the potential to expand both our markets; the similar cultures we share; and the many other positive benefits for our companies, our people, and most importantly, for our existing customers,' says Sharon Bolel of SBCM.
CJP's executive team – Joint MDs Stephen Loxton and Ian Smit, sales director Graham Ralph, and Ross Randall of Standard Bank – say they were at a stage in their company where they needed to grow their business in the specialised ingredients market. Buying a highly successful solutions-based and service and quality driven company, such as SBCM, made the most sense.
CJP, which is dominant in the food industry, realised the need to expand into specialised ingredients for the food industry, as well as personal care. 'We have largely been regarded as a commodities distributor and attracting niche agencies to distribute our specialised ingredients was proving to be a challenge. SBCM, with its wide range of agencies in the areas where we would like to expand our business to offer our customers a wider range of ingredients, was seen as the perfect match for CJP. We believe that SBCM is one of the vehicles that will take us to where we want to be in terms of company growth,' stated Loxton.
Bolel believes that the sale of SBCM to a successful, stable and sales-driven company such as CJP will provide new opportunities such as a larger base from which to expand the SBCM markets and provide customers with a far greater product offering; more career opportunities; improved negotiating strength for SBCM as a division of a large company; access to a countrywide storage and distribution network; and growing markets in African countries including the DRC, Nigeria, Tanzania and Kenya.
She added, 'When we were assessing the two companies, we were amazed at the way the companies could dovetail their existing operations without conflict or losses. For instance, both companies operate on SAP systems, ensuring that technological networking will not be an issue; there are also no conflicting agencies and all principles and customers who have been approached are positive about the acquisition; our company cultures are remarkably similar with strong focus on people development; and many more.'
Included in the CJP acquisition is SBCM's Windrose division, a supplier of a wide range of aromatherapy products as well as the manufacturing and packaging division which will provide CJP with the capacity to repack commodity products into smaller pack sizes. Staff will retain their positions in the new CJP Chemicals company and, in due course, opportunities for career development may be identified within the various divisions.
'This year got off to an exciting start for us at SBCM and, we believe, for CJP Chemicals too. Much of the year will be spent consolidating our activities as well as focusing on growth in speciality ingredients. We are exceptionally positive about these changes and developments in the life of our business and anticipate building a strong new – and even more successful – company together with the CJP team,' emphasised Bolel.
SBCM is a distributor of speciality ingredients to the food, health and nutrition, personal care, and cosmetic industries, and CJP Chemicals is a local importer, stockist, and distributor of chemical raw materials and ingredients.
CJP Chemicals was established in 1986 and has shown steady growth in the food, pharmaceutical, cosmetics, personal care, and industrial markets. The company has branches in four major metropolitan centres and a staff complement of about 200.
