South Africa's Premier Foods acquires stake in two Swaziland bread firms
South Africa's Premier Foods has acquired a controlling stake in two Swaziland-based bread and confectionery firms - Mr Bread and Swaziland United Bakeries- for ZAR85m ($10.88m).
The acquisition gives Premier Foods a 75% share of the bread market in Swaziland.
Premier Foods, which owns brands such as Blue Ribbon, Iwisa, Snowflake, BB, Super Sun, said that the acquisition would complement its business both technically and strategically, and strengthen its market position.
In 2011, international investment group Brit increased its stake in Premier Foods, in order to become a long-term strategic shareholder. This led to Premier Foods gaining access to capital for further expansion.
Premier Foods chief executive Ian Visser said that following the company's transaction with Brait last year, it is now in a position to actively participate in new sub-Saharan markets where it can acquire and grow assets aligned with its existing products and operations.
"These acquisitions fit perfectly with our investment criteria and we look forward to working closely with the management team to develop high quality but affordable products for the Swazi market," Visser added.
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