JSE-listed Clover has acquired the Olive Pride business from Southern Canned Products (SCP), which is a wholly-owned subsidiary of explosives and specialty chemicals company AECI.
SCP will dispose of Olive Pride to the newly formed Clover Pride, in which Clover South Africa holds 51% and AECI the balance. Clover will provide all services to the new entity, including merchandising, sales, marketing and distribution.
Clover CEO Johann Vorster noted that the company was excited about the acquisition, which provided further momentum to the company’s objective of expanding its value-added product offering.
“The Olive Pride brand shares many touchpoints with Clover, such as consistent high quality, great taste and continued innovation and development.
“We believe these synergies, coupled with our extensive distribution network and merchandising capability, will have a positive impact on both companies.”
Olive Pride imports, bottles and distributes olive and seed oils, including premium extra virgin olive oils, balsamic vinegars, seed and extra virgin olive oil blends, pitted and pimiento-stuffed green olives, and pitted green and black olives.
“The brand division of SCP, through the Olive Pride trademark, has grown exponentially in the recent past. The partnership with one of South Africa’s iconic brands in the newly formed Clover Pride will provide a very useful springboard for growth of the brand and its products, to the advantage of both shareholders,” commented AECI CEO Mark Dytor.
Clover Pride will continue to distribute, market and sell products under the Olive Pride brand, which holds a 37.5% market share in the olive oil category.
The transaction, which has already been approved unconditionally by the Competition Commission, is scheduled to take effect on March 1.