Tiger Brands sells minority stake in Chile’s Empresas Carozzi for US$240M

SOUTH AFRICA – South African food group Tiger Brands has announced the sale of its 24.38% minority stake in Chile-based Empresas Carozzi to Carozzi, a subsidiary of the acquired business, for $240 million.

The transaction, set to be finalized on 18 March, will see Carozzi take full ownership of Empresas Carozzi, a leading producer of confectionery, sauces, ice cream, and pet food.

Tiger Brands initially invested in Empresas Carozzi in 1999 as part of its expansion strategy into Latin America, increasing its stake to 24.38% in 2001.

However, the company has since shifted its focus, with CEO Tjaart Kruger stating that further expansion into Latin America is no longer a strategic priority.

Proceeds from the Empresas Carozzi stake sale will be reinvested into Tiger Brands’ core business to support strategic initiatives. Any surplus cash will be returned to shareholders through share buybacks and/or special dividends, according to the company’s filing.

The deal marks a significant step in Tiger Brands’ efforts to consolidate its operations and prioritize growth in its home market. With Carozzi already holding a 75.61% stake in Empresas Carozzi, the acquisition will grant the Chilean company full control over its operations, further strengthening its position in the region.

The sale aligns with Tiger Brands’ broader “portfolio optimisation strategy,” which aims to refocus the company on its core operations in Southern Africa.

Since assuming leadership in November 2022, Kruger has been focused on streamlining the company’s extensive product portfolio, which spans bakery and breakfast cereals, confectionery, baby food, soft drinks, and home and personal care products.

In December, the company unveiled a revised vision to become the region’s “leading” consumer goods company. As part of this strategy, Tiger Brands also announced plans to divest its maize and sorghum cereal lines.

Maize and sorghum cereals, widely consumed in South Africa, have been identified as “underperforming categories” targeted for disposal.

These include the Ace brand in maize and the King Korn sorghum meal (mabele) under the King Food ‘superfoods’ line.

The company has indicated that the divestment process is expected to conclude by the first half of 2025, though details on the specific brands up for sale remain pending clarification.

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