Pioneer spends R137m on UK deal
Pioneer Foods says it has bought UK-based Streamfoods Holdings for 7.5 million pounds.
|||Johannesburg - Pioneer Foods says it has bought UK-based Streamfoods Holdings for 7.5 million pounds.
In a statement issued to shareholders on Monday, the food producer says it is spending the R137 million to augment its UK-based private label portfolio.
Pioneer, which is buying the company from the Wellness Group of companies, says the deal is in keeping with its stated strategic intent of acquiring and bolstering Pioneer Foods’ product range in the UK with branded options.
“The acquisition will augment and leverage the company’s UK private label portfolio and its recently upgraded manufacturing capabilities.”
Read also: Pioneer to slash costs even as profit rises
It notes Streamfoods also exports its core brand Fruit Bowl, to China and Europe. “Pioneer Foods has extensive competence in the fruit snacking category, which bodes well for the development of the category and its brand position.”
IOL