US GOVT AGENCY HAILS KIRSH COMPANIES’ E180BN REVENUE

MBABANE – Eswatini billionaire Nathan Kirsh continues to shine in the United States and Europe, where he is an acclaimed investor.

According to the US Securities and Exchange Commission, the businesses under the ownership of Kirsh were generating revenues exceeding US$10 billion, the equivalent of E180 billion at the current foreign exchange rate. Kirsh, popularly known as Natie, is also famous for this quote in the United States: “You can’t take money with you. And if you can’t do good things with it, you’re a bloody fool.” He is more relevant to Eswatini than South Africa, where he was born because his business empire began in the kingdom. At 20, he helped his mother run a family malt factory in Potchefstroom, South Africa.

big break

Speaking to Ian Fife from Leader, an online publication, Kirsh said his big break came in 1958 when he wanted to use a £1200 (E28 000)  insurance payout for his father’s death to build a brewery in Eswatini. Instead, the Eswatini colonial government asked him to manage its maize industry. That is how the Swaziland Milling started. It is still operational under different ownership. He had to buy all the maize the farmers wanted to sell and build storage facilities and a mill. He needed £45 000 (E1 260 000) to set it up. He assembled a consortium of investors, who paid £15 000 (E360 000) for their shares and lent the company the E360 000.  “My brother Issy — he had £1 200 (E28 000) — and I went to the manager of Standard Bank at Potchefstroom, whom I knew from running my mother’s business,” Kirsh told Leader. “The limit of his lending discretion for a company without having to get higher approval was £5 000 (E120 000) or £2 500 (E60 000) for individuals.”  

Meanwhile, the current revenues for Kirsh’s businesses were revealed by the commission in its approval of FEMSA’s investment in Jetro Restaurant Depot, creating a joint venture for Latin America.

minority stake

Public documents show that Fomento Economico Mexicana (FEMSA) signed a memorandum of understanding (MoU) to acquire a minority stake in privately-held Jetro Restaurant (JRD). The MoU contemplated that FEMSA and JRD would enter into a joint venture to take JRD’s business model to Mexico and other Latin American markets. The amount of FEMSA’s investment as per the MOU was US$750 million, the equivalent of E13.5 billion at the current foreign exchange rate. That was a big deal for Kirsh’s businesses, as FEMSA operates the largest independent Coca-Cola bottling group in the world and the largest convenience store chain in Mexico. It is also shareholder of Heineken N.V. The multinational beverage and retail company is headquartered in Monterrey, Morocco. It has been established that FEMSA reported revenues of E484 billion, (US$26.9 billion) for 2019, making it the fifth largest company of Mexico. Reviewing the financial statements of Jetro Restaurant Depot and FEMSA was a legitimate body established by federal statute. The US Securities and Exchange Commission (SEC) is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets and facilitating capital formation.

securities markets

It was created by Congress in 1934, as the first federal regulator of the securities markets. It promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States. It also approves registration statements for book runners among underwriting firms. SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States. Based on the Commission’s statements, JDR is part of Jetro Holdings. It has been discovered that Jetro Holdings own JDR and Jetro Cash and Carry. Therefore, Kirsh Holdings or its companies, JDR and Jetro Cash and Carry make more money than all Eswatini businesses put together. The country’s Gross Domestic Product (GDP) was E85.374 billion in 2021.

considered a leader

Jetro is now considered a leader in the wholesale business-to-business cash and carry retail food service segment in the United States. Founded in 1976, the company operates over 130 stores across the United States with two formats, Jetro Cash and Carry and Restaurant Depot, with revenues exceeding US$10 billion (E180 billion) in 2018. According to FEMSA, transaction with Jetro fitted well with its strategic intent to invest in growth opportunities that can leverage its capability set across different markets, while providing the opportunity for attractive risk-adjusted returns. The transaction allowed FEMSA to gain exposure to the US wholesale cash and carry segment by investing with a formidable partner, and at the same time creates the platform for a new joint venture to develop and grow this business in its core markets.

Jetro’s image  

Investigations by this newspaper revealed that most businesses in the US want to partner with Kirsh’s companies, because of the manner in which his team operates the businesses.
According to a paper by FEMSA motivating the partnership, Jetro provides full-time employees with the following –
* Health insurance;
* Paid personal and vacation days;
* Retirement plan contributions, life insurance and disability insurance.
Employees of Jetro Cash & Carry and Restaurant Depot are members of the United Food and Commercial Workers Local 2013 and the International Longshoreman’s Association Local 1814.

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