Pioneer Food Group Limited (Pioneer Foods) today announced it will acquire the outstanding 50.1% in its joint venture, from Heinz SA Proprietary Ltd, a subsidiary of the Kraft Heinz Company. At the close of the transaction, Heinz Foods South Africa will become a wholly owned subsidiary of Pioneer Foods.
Pioneer Foods’ CEO, Tertius Carstens commented, “By acquiring full ownership of Heinz Foods SA, we look forward to the further growth and development of the portfolio that includes a range of number one or two brands in their respective categories.”
As part of the transaction, Pioneer Foods will enter into a two-year agreement with Kraft Heinz pursuant to which Pioneer Foods will manufacture and distribute Heinz tomato ketchup products. Pioneer Foods will also distribute HP & Lea Perrins products and certain other Kraft Heinz products. “We will continue to work with Kraft Heinz to support the expansion of the Kraft Heinz brands in South Africa,” said Carstens.
“We believe this change is an excellent opportunity for the business and our employees to leverage Pioneer Foods’ existing scale and platform in South Africa to grow the business further,” says Felipe Guimarães, Managing Director of Kraft Heinz Middle East and Africa.
The transaction is expected to close in the first quarter of 2018, pending regulatory approval. Terms of the transaction were not disclosed.
About Pioneer Food Group Limited
Pioneer Foods is one of the largest South African food and beverage manufacturers publicly listed on the Johannesburg Stock Exchange. The Group operates principally across Southern Africa, providing wholesale, retail and informal trade customers with a range of globally trusted, market leading brands. Pioneer Foods exports to more than 60 countries across the globe.
The Heinz stable of products includes the Wellington’s range of sauces and condiments, the John West range of canned seafood products, as well as the frozen prepared-meal category through the Today and Mama’s range of meals, pies and pastries.