Pioneer Food Group Ltd., South Africa, announced plans to acquire the outstanding 50.1% in its joint venture, from Heinz SA Proprietary Ltd., a subsidiary of the Kraft Heinz Co., Chicago. At the close of the transaction, Heinz Foods South Africa will become a wholly owned subsidiary of Pioneer Foods.
“By acquiring full ownership of Heinz Foods SA, we look forward to the further growth and development of the portfolio that includes a range of No. 1 or 2 brands in their respective categories,” says Tertius Carstens, chief executive officer of Pioneer Foods.
As part of the transaction, Pioneer Foods will enter into a 2-year agreement with Kraft Heinz pursuant to which Pioneer Foods will manufacture and distribute Heinz tomato ketchup products. Pioneer Foods will also distribute HP and Lea & Perrins products and certain other Kraft Heinz products.
“We will continue to work with Kraft Heinz to support the expansion of the Kraft Heinz brands in South Africa,” says Carstens.
“We believe this change is an excellent opportunity for the business and our employees to leverage Pioneer Foods’ existing scale and platform in South Africa to grow the business further,” says Felipe Guimarães, managing director of Kraft Heinz Middle East and Africa.