South African consumer goods firm Tiger Brands is to purchase unlisted powdered food manufacturer Davita Trading for US$185m in a bid to boost its presence in Africa.
Tiger said it expects Davita’s presence in 28 countries in Africa and the Middle East to boost its export division and allow expansion into other markets on the continent, the firm said yesterday (15 February).
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Tiger said it would pay ZAR1.35bn (US$185m) in cash for Davita, a South African manufacturer and exporter of powdered seasonings and beverage products. The company sells its products under three brands, including Benny powdered seasonings.
The company achieved an annual turnover of ZAR56m for the financial year ended 28 February 2010, of which around 99% was from exports.
Tiger said: “Davita has an established distribution footprint on the African continent which will provide Tiger Brands’ export division with new growth vectors by leveraging off Davita’s solid distributor relationships and penetrating new geographies as well as deepening market penetration in existing markets.”
Davita managing director David Desilets has agreed to continue his employment with the company until 31 December 2011.
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