Woolworths Snaps Up Private-label Supplier In2food In South Africa

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South African retailer Woolworths has agreed to get In2Food, a private-label supplier of fresh meals, bakery, snacks and drinks.

The grocer is buying nan business done its Woolworths Foods portion from investor Old Mutual Private Equity, which is portion of Cape Town-based Old Mutual Alternative Investments.

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Financial position were not disclosed successful a Woolworths’ filing pinch nan Johannesburg banal speech coming (17 March). The transaction is taxable to regulatory approval, including from South Africa’s title authority.

In2Food has been an existing supplier to Woolworths for much than 30 years and generates gross of R5bn ($298.4m) a year. It besides supplies caller consequence and veg, seafood and consequence juices.

Woolworths said nan woody will “strengthen its proviso concatenation resilience and further differentiate its premium nutrient offering”.

At nan aforesaid time, it will springiness nan retailer “greater agility and efficiencies successful nan proviso concatenation resulting successful improved speed-to market”, while boosting its invention capabilities.

Woolworths added In2Food will supply “new opportunities for accelerated maturation successful non-competing gross streams”, peculiarly successful foodservice wherever nan acquired business besides operates.

In2Food, which acknowledged nan Woolworths’ transaction connected LinkedIn, runs 8 manufacturing accommodation successful South Africa, according to nan filing.

The guidance squad astatine In2Food, which counts Woolworths arsenic its largest customer, will stay successful place.

Old Mutual Alternative Investments had not responded to Just Food’s petition for remark connected nan waste of In2Food astatine nan timing of penning and nan reasons for nan disposal.

The investor acquired a “significant minority” interest successful In2Food successful 2016 but it is unclear if that liking was ever increased.

In2Food emerged successful its existent shape successful 2010 from nan merger of nan South African companies Interfruit and Lombardi Foods. The second was already a supplier to Woolworths astatine nan clip of that transaction.

It went connected to grow nan business done M&A, acquiring consequence supplier Spring Valley Bapsfontien, Compass Bakery and Newport Juices complete 2013 and 2014, according to In2Food’s website.

Strawberry business Echo Berry and Nibbly Bits successful snacks and bakery were added to nan portfolio successful 2016.