Tiger Brands said yesterday that it had entered into a sale of business agreement to dispose of its Baby Wellbeing business to an unrelated third-party purchaser for R605 million as part of optimisation strategy to simplify the company’s portfolio of brands.
In addition, the purchaser will also acquire inventories relating to the Baby Wellbeing business on the effective transaction date, currently expected to be approximately R25m in value.
However, the sale of business agreement is subject to suspensive conditions, including the regulatory approval of the competition authorities.
The agreement follows the successful sale of select non-core home and personal care brands that include Bio Classic, Bio Crystal, Kair, Fiesta, Black Silk and Eulactol for a total cash consideration of R161m, inclusive of inventories, effective 30 September 2024.
The purchaser will acquire Tiger Brands’ Baby Wellbeing business, as a going concern, along with all trademarks associated with Elizabeth Anne’s and all trademarks linked to its baby medicinal brands (namely, Phipps, Muthi Wenyoni, Telament, and Antipeol). The transaction also includes the rights to manufacture and sell Vi-daylin under licence.
Tiger Brands will remain the owner of the Purity brand and trademarks and have entered into a limited licence that will allow the purchaser the use of the Purity brand for an agreed period of time.
Tiger Brands’ Baby Nutrition business will remain a core part of the company’s food manufacturing portfolio.
Tjaart Kruger, Tiger Brands CEO, said they were pleased to have reached an agreement with a leading South African manufacturer of home and personal care products for the sale of their Baby Wellbeing business.
“During the last year, we have restructured our business and have undertaken an extensive portfolio review to identify business units and categories where there is no longer a financial or strategic fit,” Kruger said.
“This transaction marks another milestone in the simplification of our portfolio and will enable us to intensify our focus on the Baby Nutrition business, a core area where we believe we have a clear competitive advantage.”
BUSINESS REPORT