Woolworths Holdings Limited (WHL) announced today its intention to acquire 100% of the shares in privately-owned prepared foods manufacturer in2food, from the founders, Old Mutual Private Equity (part of Old Mutual Alternative Investments Proprietary Limited), and other exiting shareholders.

in2food is a South African based, market-leading supplier of high-quality convenience foods and one of Woolworths Foods’ most significant suppliers. in2food generates revenue in excess of R5 billion per annum through its diversified range of premium private label products across freshly prepared convenience food, fresh produce, and long-life categories as well as several ambient and bakery products. Woolworths Food is in2food’s largest customer with the balance of its customers comprising other local and international companies across the food service and wholesale channels.

Woolworths Group CEO Roy Bagattini said: “Woolworths and in2food share a more than three-decade history of partnership in creating products of outstanding quality and innovation to meet the evolving needs of our customers. This acquisition represents a compelling opportunity to bring a key strategic capability closer to the Woolworths Foods business, strengthening one of the core points of differentiation in our premium food offering.”

in2food has an experienced senior leadership team with deep, multi-disciplinary expertise across the food sector. The management team will continue to lead in2food as a standalone operating business within Woolworths ensuring continuity of operations while preserving the entrepreneurial culture that has underpinned its success.

“Woolworths and in2food have an extended track record of close collaboration, focused on delivering high-quality, innovative food products aligned with Woolworths Foods’ premium positioning,” said Richard Cooper, CEO of in2food. “The Transaction further enhances Woolworths Foods’ ability to protect product quality, innovation and availability, which are core to its differentiated customer proposition. We look forward to further deepening our decades-long connection with Woolworths, and to continue to put innovation, value and quality at the centre of the Woolies Food journey.”

“This transaction brings to conclusion the more than three decade-long partnership with Old Mutual Private Equity and the other exiting shareholders. We would like to thank the outgoing shareholders for being very supportive partners, contributing meaningfully to the commercial rigour applied to key decisions along in2Food’s growth journey since 2015,” continued Cooper.

Bagattini emphasised that the acquisition does not signal a change in Woolworths’ broader food sourcing model. “Our unique relationship with our suppliers is what differentiates us, and is fundamental to delivering our premium food offering. This transaction further enhances the relationship we have with one of our most innovative suppliers, and will extend mutual benefits to our entire value chain and end-customers.”

It is anticipated that the acquisition will be earnings accretive to the Woolworths group, even prior to the benefit of envisaged operational efficiencies which will be realised over time. The purchase consideration will be settled in cash, utilising the Group’s existing financing facilities. The conclusion of the transaction is subject to the fulfilment of both regulatory and commercial suspensive conditions customary of a transaction of this nature, including the approval by the competition authorities of South Africa.

 

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NOTES TO EDITORS:

Woolworths Holdings Limited (WHL) is listed on the JSE Limited Securities Exchange (JSE) with operations across the southern hemisphere. The Group’s vision is to be one of the world’s most responsible retailers, which reflects the organisation’s passionate commitment to doing good business for our customers, our people and our planet. See more information here.

The Group consists of two major operating divisions:

  • Woolworths South Africa (Woolworths or WSA) based in South Africa and operating across 10 countries in sub-Saharan Africa; and
  • Country Road Group (Country Road Group or CRG) based in Australia and trading in Australia, New Zealand and South Africa.

Sustainability is core to our business and is put into action through our Good Business Journey programme which enables a consistent approach to managing sustainability issues across the Group. The programme focuses on eight focus areas: people, social development, health and wellness, sustainable farming, ethical sourcing, packaging and waste, water and energy and climate change. See more information here.

Woolworths Financial Services (WFS) is a joint venture between Woolworths and Absa Group Limited, with Absa Group Limited owning 50% + 1 share.

IN2FOODS

in2food’s growth in the Prepared Food Industry stems from the partnership and collaboration with South Africa’s Premium retailer, Woolworths. This Valued Partnership stems back to the early 1990’s.

Two successful companies, Interfruit and Lombardi Foods, stepped out from common paths to merge. These companies, both home-grown in South Africa, with a mutual pursuit of excellence in prepared food products and having common values and a shared vision, in 2010, formed the company known today as in2food.

Through a strong partnership with both customers and shareholders, the organisation has shown consistently strong performance over the past decade. Growth has been both organic as well as acquisitive, allowing the business to expand and diversify across food categories and portfolios.

Today, in2food has a diverse range of products across the Fresh Produce, Fruit, Prepared, Seafood, Frozens, Bakery, Snacks and Long Life divisions, produced for Woolworths South Africa, a Leading Retailer in the South African Market. This partnership dates back to the 1990’s, and continues to be a key focus and partnership for both businesses.

This capability expands into other Brands, Food Service and Export Markets, where we continue to deliver innovative solutions that inspire. See more information here.