South African consumer goods group Tiger Brands has made a fresh move to acquire local rival AVI.
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AVI, which has rejected previous approaches from Tiger, is currently considering the terms of the proposed deal.
In a joint statement issued today (26 January), the companies said Tiger had made “further formal communication” to AVI. However, no further information is being disclosed at present.
Peter Matlare, CEO of Tiger Brands, told just-food that the combined company would provide a foundation for faster growth in South Africa and throughout the rest of the continent.
“The combined company will create a focused and balanced fast-moving consumer goods company and will result in a more efficient and effective platform from which to position the combined entity for accelerated growth.
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By GlobalData“This combination would allow the merged entity to improve its global competitiveness to the benefit of consumers, customers and other stakeholders and will provide a stronger base to expand further into the rest of Africa,” he said.
Matlare said that Tiger was looking to expand its business both organically and through strategic acquisitions.
“In terms of Tiger’s growth strategy we’ve identified a couple of areas where we’ve always said we wanted to grow. One is domestically – either organically in terms of the innovations that we drive within our organisation, and indeed the other is acquisitively in terms of those opportunities that exist where Tiger currently does not play,” he revealed.
Matlare added that Tiger did not anticipate the crisis in the global credit markets standing in the way of the company’s expansion plans.
“We believe we have a strong balance sheet, we’re a highly cash-generative business… that allows us to go into the capital markets and have discussions about raising that capital, and we think we’ve done our homework.”
AVI produces snacks and beverages, including the Bakers, Pyotts and Baumann’s brands.
