Rhodes Food, a South African manufacturer of longlife meat, vegetable and fruit products, fruit drinks and fresh foods, has announced it will acquire the business assets of Alibaba Food Holdings (Alibaba) for 42,000,000 ZAR ($3 million).
Alibaba, based in Athlone, Cape Town, manufactures a range of halal food products including samosas, pies and rooties. Its products are sold to major South African food retailers, forecourt bakery outlets and independent traders.
In a statement, the company said: “The acquisition presents an attractive investment opportunity which is aligned with RFG’s strategy of expanding its business operations through value accretive acquisitions. This Acquisition will further strengthen Rhodes Food’s position in the bakery and snacking category, particularly in the convenience channel”.
“Alibaba will complement the group’s existing pies and pastries business, and its newly acquired confectionery business from General Mills South Africa”, the company added.
The purchase is expected to become effective from the 1st February 2016.
Source: Rhodes Food