The CEO of Tiger Brands in Nigeria has said the company will look for further opportunities for growth in both Nigeria and across the rest of the African continent following its acquisition of flour and pasta maker Dangoteis last week.
Chief executive of Tiger Nigeria Thabi Segoale said Tiger Brands is attracted to Nigeria and the West African region due to the “large (consumer) population numbers and projected rapid economic growth rates (based on 7 to 8% GDP growth rate forecasts)”.
Segoale said the growth projection offers a “substantial” growth opportunity for Tiger Brands.
“We will grow the business as fast as the market opportunities enables that and this will be a function of the progress we make in entrenching our brands and building both capability/capacity to service the Nigeria consumer market,” he told just-food.
Tiger Brands announced the acquisition of Dangoteis in a stock exchange filing last week and said, if implemented, the transaction would result in the company purchasing a 63.35% stake in the listed company.
Further details on the deal are expected when it receives regulatory clearance, but Segoale told just-food the company will continue to look for further opportunities to grow its business, not only in Nigeria, but across the rest of the African continent.
This, he said, would be done through “organic growth of existing businesses, further acquisitions/brown field opportunities and greenfields opportunities where appropriate”.
Tiger already owns Deli Foods and a 49% stake in UAC Foods Nigeria in the country. Segoale, however, said Deli Foods and its proportionate share of UAC is currently less than 5% of total group sales.
“Both investments are performing to our satisfaction and ahead of our original acquisition cases,” told just-food, adding: “Dangote Flour Mills scales up Tiger’s position across the African continent in what is a well-established core competence in wheat flour products as well as pasta and noodles.”