South Africa: Woolworths to acquire In2food

Woolworths, the South African retail group, has announced an agreement to acquire 100% of its long-term supplier, In2food. While the financial terms of the deal were not disclosed, In2food is a major industry player generating annual revenues exceeding 5 billion ZAR ($290 million).

In2food, a South African producer of fresh prepared foods, snacks and bakery items, has been a strategic partner to Woolworths for more than three decades. It is currently the retailer’s largest supplier in the prepared food category. The transaction involves Woolworths purchasing the business from its founders and the private equity firm Old Mutual Private Equity (OMPE).

According to Woolworths, the acquisition is intended to secure the company’s supply chain and provide a platform for international growth. The retailer aims to leverage In2food’s established export business – which already services international clients such as Marks & Spencer in the UK – to expand its presence in global markets, including the US and the Middle East.

Commenting on the deal, Woolworths CEO Roy Bagattini said: “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.”

The move follows the company’s strategic shift to focus on its core South African operations after the sale of the Australian department store chain David Jones in 2023. Following the completion of the deal, In2food will continue to operate as a standalone business under its current management team.

Source: Reuters / Daily Maverick / Just Food / ChemAnalyst / Moneyweb