Woolworths Holdings Limited has announced its ambitious plan to acquire in2food, a leading prepared foods manufacturer in South Africa.
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Woolworths Holdings Limited (WHL) unveiled an ambitious plan to acquire 100% of the shares in in2food, a well-regarded prepared foods manufacturer based in South Africa.
in2food has established itself as a market leader in convenience foods, generating revenues exceeding R5 billion annually through a diverse portfolio comprising freshly prepared goods, fresh produce, long-life items, as well as ambient and bakery products.
Notably, Woolworths Food is the largest customer of in2food, which also supplies a variety of local and international companies through food service and wholesale channels.
Commenting on the longstanding partnership between Woolworths and in2food, Woolworths Group 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.
He noted that the acquisition will see in2food operate as a standalone business within Woolworths, with its experienced senior leadership team remaining in place.
Richard Cooper, CEO of in2food, said the transaction further enhances Woolworths Foods’ ability to protect product quality, innovation, and availability, which are core to its differentiated customer proposition.
He also expressed gratitude towards Old Mutual Private Equity and other exiting shareholders for their support and guidance during in2food’s growth journey since 2015.
Bagattini made it clear that this acquisition will not alter Woolworths’ broader food sourcing model.
“Our unique relationship with our suppliers is what differentiates us and is fundamental to delivering our premium food offering,” he said.
He emphasised that the transaction enhances the already strong relationship with one of their most innovative suppliers, benefitting the entire value chain and ultimately the end-customers.
The group expects the acquisition to be earnings accretive, even before factoring in operational efficiencies anticipated to emerge over time. The purchase consideration will be settled in cash, leveraging Woolworths’ current financing facilities.
However, the completion of the transaction remains dependent on the fulfilment of both regulatory and commercial suspensive conditions, including the approval from South Africa’s competition authorities.