Tiger Brands and Nestle announced on Wednesday that an agreement in principle has been reached for the acquisition by Tiger Brands of the sugar confectionery portfolio of Nestle in South Africa.
The sugar confectionery portfolio of Nestle includes such well-known brands as “Jelly Tots” and “Wilson’s”.
Yves Manghardt, chief executive of Nestle (South Africa) said that Nestle (South Africa) had decided to dispose of its sugar confectionery portfolio in order to focus on its chocolate business and to drive profitable, sustainable growth of its strong chocolate brands.
Revenue of the sugar confectionery brands is in excess of R100-million per year.
Nick Dennis, CEO of Tiger Brands, said that the acquisition would be an important addition to the company’s branded confectionery business.
The purchase of the sugar confectionery portfolio involves the acquisition of plant and equipment and trade marks.
The transaction is subject to the appropriate approval of the competition authorities, a decision in respect of which is expected during the second half of 2006, Tiger Brands said. — I-Net Bridge