JSE-listed Pioneer Foods advised shareholders on Thursday that it had agreed to acquire a 50% shareholding in Futurelife Health Products, for an undisclosed purchase consideration, to enter into the functional foods category.
Pioneer explained that the scientifically formulated, nutrient-dense, functional food products company was one of South Africa’s fastest growing health brands within the category. The transaction was expected to complement Pioneer Foods’ existing product portfolio, which included brands such as Weet-Bix, Bokomo, Liqui-Fruit, Sasko and White Star.
The joint venture (JV) would enable both companies to combine their expertise in both the food and beverage and functional foods sectors to explore profitable categories outside of their respective traditional markets and unlock new product opportunities that may otherwise not have been accessible to either company.
“As a leading fast-moving consumer goods company, innovation is at the core of our business,” said Pioneer Foods CEO Phil Roux, adding that the JV provided Pioneer Foods with the opportunity to shape a winning-brand portfolio through the fast-tracking of product innovations and the development of new product categories.
Futurelife founder and CEO Paul Saad, who would lead and manage the JV, noted that the deal was set to be a win for the South African consumer.
“Combining Pioneer Foods’ scale and experience in the food and beverage market together with our functional food expertise to create the first smart-food-formulated range of products will result in exciting new health choices.”
The transaction was subject to conditions precedent, including Competition Commission approval.