Food acquisition news : The Kraft Heinz Company, an American food company will quit from its joint venture Heinz Foods South Africa by divesting its 50.1% stake to partner Pioneer Food Group.

The South African food manufacturer Pioneer Foods will take over as full owner of Heinz Foods South Africa after the transaction.

Financial terms of Pioneer Foods acquisition of Kraft Heinz’s stake through its subsidiary Heinz SA have not been revealed.

According to the deal conditions, Pioneer Foods has agreed for the manufacturing and distribution of Heinz tomato ketchup range for a couple of years.

Pioneer Foods will also handle the distribution of HP & Lea Perrins products along with some other Kraft Heinz products as per the agreement to back the growth of the sauce brands in South Africa.

Commenting on Pioneer Foods acquisition of Heinz Foods South Africa, the company’s CEO Tertius Carstens said: “By acquiring full ownership of Heinz Foods SA, we look forward to the further growth and development of the portfolio that includes a range of number one or two brands in their respective categories.”

The food products produced under the Heinz umbrella are Wellington’s line of sauces and condiments, the John West range of canned seafood products as well as Today and Mama’s varieties of meals, pies and pastries that fall in the frozen prepared-meal segment.

Felipe Guimarães, the managing director of Kraft Heinz Middle East and Africa, commenting on the Pioneer Foods acquisition of Heinz Foods South Africa, said: “We believe this change is an excellent opportunity for the business and our employees to leverage Pioneer Foods’ existing scale and platform in South Africa to grow the business further.”

Pioneer Foods expects the deal to be closed during the first quarter of next year, provided it gets the regulatory nod.

Listed on the Johannesburg Stock Exchange, Pioneer Foods has operations primarily in Southern Africa. The South Africa food company caters to wholesale, retail and informal trade customers with a variety of food and beverage brands, besides exporting to 60 plus countries.

For more such food acquisition news and food industry news, keep following Business-News-Today.com.

  Food acquisition news, Heinz Foods South Africa, Pioneer Food Group, South African food news, The Kraft Heinz Company