RCL Foods has added sugar to growing food portfolio

RCL Foods has added sugar to growing food portfolio

South African group RCL Foods has acquired local business TSB Sugar as its bid to diversify its business continues.

RCL Foods is the former South African poultry firm Rainbow Chicken, which changed its name when it acquired local group Foodcorp, a company behind products from pies to peanut butter, this summer.

The company has continued the broadening of its business with the purchase of TSB Sugar, which owns the Selati sugar brand.

TSB Sugar is indirectly owned by South African investment fund Remgro, which is the controlling shareholder of RCL Foods.

A share issue of RCL Foods' stock will pay for the ZAR4bn (US$391.1m) deal. After the share offer, Remgro will still hold just under 78% of RCL Foods.

RCL Foods said the deal would help it "create a more broadly diversified revenue stream" and help it reach "critical mass" in the industry.

It added the transaction would also help it "establish an attractive, well capitalised agri-foods platform for future sub-Saharan Africa expansion opportunities".