Premier Foods in R85m Swazi deal

Consumer goods group Premier Foods has acquired a controlling stake in two Swazi-based bread and confectionery businesses - Mr Bread and Swaziland United Bakeries - for R85-million.

The combined businesses command a 75% share of Swaziland's bread market through local brands such as the Supreme bread range, Premier Foods said.

Premier Foods, which owns brands such as Iwisa maize meal, Snowflake flour and Blue Ribbon bread, said it would support the businesses technically and strategically to strengthen their market position.

Premier Foods CEO Ian Visser said: "Following our transaction with Brait last year, we are now in a position to carry out our strategy to actively participate in new sub-Saharan markets, where we can acquire and grow assets aligned with our 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."

In July last year, the international investment group, Brait SA, increased its stake in Premier Foods to become a long-term strategic shareholder with a view to supporting Premier Foods' next phase of growth.

This resulted in Premier Foods gaining improved access to capital for investments focused on the development of new products and brand extensions, and capacity expansions across the supply chain.

Mr Bread managing director Wayne Levendale becomes CEO.

"This investment by Premier Foods brings a myriad of benefits, including much-needed access to expertise in terms of technology, operational efficiencies, product quality and skills transfer," he said.

"As a result, consumers can expect a better service through an improved delivery network and the introduction of new product ranges including high-end confectionery products at affordable prices in line."