South African-Swazi billionaire Natie Kirsh loses $600 million as fortune falls below $20 billion

Five days after crossing the $20 billion mark, South African-Swazi billionaire Natie Kirsh has seen his fortune fall by $600 million, pushing his net worth back below the threshold as the value of his holdings was reassessed.

According to Forbes, which tracks the wealth of more than 3,400 billionaires worldwide, Kirsh’s fortune stood at $19.4 billion at the time of this report, down from $20 billion five days earlier.

The decline comes after a sharp rise in Kirsh’s wealth earlier this year.

His fortune climbed from $9.1 billion on Jan. 1 to $20 billion on Aug. 14, helped by an agreement to sell his U.S. wholesale grocery businesses, Jetro Cash & Carry and Restaurant Depot, to Sysco Corp. for $29.1 billion, including debt.

The transaction marked a major change for Kirsh’s holdings in the U.S. food-service market.

What does the Jetro deal mean?

Jetro Restaurant Depot LLC operates 166 warehouse-style stores across 35 states and serves about 725,000 restaurant owners and other food-service operators.

Under the agreement, Jetro shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares, giving them about a 16 percent stake in the publicly traded company.

The deal values Jetro at more than 14 times its operating income and ties a significant portion of Kirsh’s wealth to Sysco’s share price.

Sysco, which has a market cap of over $30 billion on the New York Stock Exchange, plans to finance the acquisition with $1 billion in cash and $21 billion in new debt and hybrid debt.

It has also suspended its share-buyback program as it works to reduce leverage following the transaction.

How did Natie Kirsh build wealth?

Kirsh built his fortune over decades.

He began in Potchefstroom in a family-owned malt business and, after graduating from the University of the Witwatersrand in 1952, returned to Eswatini with £1,200 ($1,500 at the time).

He later expanded the family business into grain milling and wholesale distribution before founding Jetro in 1976.

The company grew into a major U.S. food-service wholesaler, generating $16 billion in revenue and $2.1 billion in earnings before interest, taxes, depreciation and amortization last year.

Jetro is only one part of Kirsh’s broader portfolio. He owns a $476 million stake in Jetro’s real estate business and a 54 percent interest in Sydney-based Abacus Property Group valued at about $318 million.

His other holdings include Abacus Storage King, valued at about $430 million, Tower 42 in London at $364 million and an estimated $1.18 billion in cash.

Bloomberg, however, puts Kirsh’s net worth at about $15.1 billion, with his interest in Jetro Holdings accounting for $12.5 billion.

The wide gap between Forbes’ and Bloomberg’s estimates reflects differences in how Kirsh’s private and publicly traded assets are valued.