Prodalim Acquires 93.25% Stake in Brenn-O-Kem for $37M

CAPE TOWN — Global juice and specialty ingredients leader Prodalim has announced the acquisition of a 93.25% stake in Brenn-O-Kem (BOK), a South African manufacturer specializing in upcycling winery by-products into high-value specialty ingredients, for $37 million (~ZAR 660 million).

Founded in 1968, Brenn-O-Kem operates three processing facilities across South Africa's Cape region, employing 160 people. For the 12 months ended September 2026, the business generated approximately $29 million in revenue and $8 million in EBITDA. Following the transaction, BOK’s management team will remain in place and retain an equity ownership stake.

Operational Footprint & Product Portfolio

Brenn-O-Kem processes grape pomace and wine lees into an extensive commercial portfolio of natural, clean-label ingredients serving the wine, food and beverage, nutraceutical, agricultural, and pharmaceutical industries:

• Natural Ingredients Portfolio: Produces recycled aromatic alcohol for wine and spirits; tartaric acid and derivatives for food, beverage, and pharma applications; grape seed extracts for nutraceuticals; grape skin extracts for natural colors; and grape seed oils and wine concentrates for culinary markets.
• Agricultural Circularity: Produces recycled compost for animal nutrition, maximizing value extraction from wine industry organic waste streams.
• Regional Market Integration: BOK's deep relationships across South Africa’s wine ecosystem create direct channels to introduce Prodalim’s Solos dealcoholization platform to support the expanding No/Low (NoLo) alcohol beverage sector.

Strategic Platform Synergies

The acquisition advances Prodalim's vertically integrated supply chain across its core business divisions:

• Botanical Extracts Expansion: Enhances Prodalim's specialty ingredients platform by leveraging South Africa's flora and polyphenol-rich grape seed extracts for functional beverages and dietary supplements.
• Global Distribution: Integrates BOK’s upcycled product suite into Prodalim’s international commercial network,unlocking cross-selling opportunities across global customer bases.
• Division Infrastructure: Strengthens Prodalim’s three core operating arms: Juice Solutions (sourcing, logistics,blending), Specialty Ingredients & Solutions (essential oils, citrus fibers, colors, FTNF essences), and Solos (patented dealcoholization technology).

Executive Commentary

"The acquisition of Brenn-O-Kem strengthens Prodalim’s global circular economy platform, allowing us to expand our portfolio of natural, sustainable ingredients while maximizing value from every fruit. BOK’s strong relationships within South Africa’s wine industry also create immediate opportunities to deploy our Solos dealcoholization technology to support the growing No/Low alcohol beverage market."
— Prodalim Executive Team

Transaction Advisory

• Buyer: Prodalim (Acquired 93.25% equity stake for $37M).
• Seller / Target Management: Brenn-O-Kem Management Team (Retained 6.75% equity stake).

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