Tiger Brands Unveils Big Sell-Off as It Closes Chapter on Non-Core Businesses
Johannesburg: Tiger Brands, South Africa's largest food producer, has announced the sale of its Baby Wellbeing business to an undisclosed buyer for 605 million rand ($33.4 million), a move intended to streamline its portfolio and focus on its core operations.
According to Group CEO Tjaart Kruger, the company had embarked on an extensive review process that identified the Baby Wellbeing business as no longer financially and strategically viable. As part of this decision, Tiger Brands will sell off the business, which comprises baby toiletries under the Elizabeth Anne's brand name, medicinal products, including antacid Muthi Wenyoni, Telament colic drops, and skin cream Antipeol.
The buyer also acquired inventories related to the Baby Wellbeing business for around 25 million rand. Furthermore, Tiger Brands has agreed to license its Vi-Daylin brand under licence for multivitamin manufacturing.
In a separate deal effective September 30, the buyer purchased some of Tiger Brands' "non-core home and personal care brands" including Bio Classic, Bio Crystal, Kair, Fiesta, Black Silk, and Eulactol for 161 million rand (including inventories).
Tiger Brands has retained ownership of its Purity brand and trademarks, which are associated with its baby nutrition business that sells cereal, porridge, fruit pouches. However, it has entered into a limited licence agreement allowing the buyer to use the brand for an agreed period.
Kruger expressed his confidence in the Baby Nutrition business, saying: "This transaction marks another milestone in the simplification of our portfolio and will enable us to intensify our focus on this core area where we believe we have a clear competitive advantage."
The company's decision comes as part of its effort to reduce its footprint and invest more in its core operations. With this deal, Tiger Brands aims to enhance its presence in the market while maintaining its dominant position in the Baby Nutrition segment.