JSE-listed Pioneer Foods has entered into an agreement to acquire the entire issued share capital of UK-based Streamfoods, wholly owned by the Wellness Group of companies, for £7.5-million.
The acquisition was in line with the stated strategic intent of acquiring and bolstering Pioneer Foods’ product range in the UK with branded options, the South African food and beverages company said on Monday in a statement to shareholders.
The acquisition will augment and leverage the company’s UK private label portfolio and its recently upgraded manufacturing capabilities, with Streamfoods also exporting its core brand, Fruit Bowl, to China and Europe.
“Pioneer Foods has extensive competence in the fruit snacking category, which bodes well for the development of the category and its brand position,” the company commented.