RFG HOLDINGS, which owns brands such as Rhodes, Bull Brand, Magpie, Squish, Bisto, Hinds and Pakco, said yesterday that its subsidiary, Rhodes Food Group, would buy the frozen foods business of Pioneer Foods Wellington as it grows its frozen pie and snack category footprint.
The value of the deal was not disclosed.
The company said it had entered into an agreement dated June 2 in terms of which Rhodes Food will acquire the frozen foods business of Pioneer Foods Wellingtons as a going concern, save for any operations in Botswana and Eswatini.
The product range of the business included frozen pies, pastry, sausage rolls, pizza and party packs under the well- established brands Today, Mama’s, Big Jack and Man’s Meal.
RFG said the business had a strong presence in the frozen pies and pastry segment, and serviced the South African top-end retail market. Manufacturing was conducted from a facility in Atlantis, Western Cape and products are distributed nationally.
"The board of RFG believes that the acquisition presents an attractive investment opportunity, which is aligned with RFG's strategy of expanding its existing business operations through value accretive acquisitions. The board believes that the frozen pie and snack category in the top-end retail market complements RFG’s growing pies and pastries business and that the acquisition has the potential to generate good synergies for the company,“ it said.
The acquisition, depending on the timing of the fulfilment of the conditions precedent, would be January 1, 2022, RFG said.
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