South Africa's biggest food producer Tiger Brands will sell its Baby Wellbeing business for 605 million rand (€31.7 million), but will exclude its Purity brand, which it described as a core asset.
The Baby Wellbeing business was identified as no longer a "financial and strategic fit" after an extensive portfolio review, group CEO Tjaart Kruger said.
The buyer, whose name was not disclosed but which the company said was one of South Africa's leading manufacturers of home and personal care products, will also acquire inventories relating to the business for about 25 million rand (€1.3 million), Tiger Brands said.
The Baby Wellbeing business comprises baby toiletries under the Elizabeth Anne's brand name and medicinal products including antacid Muthi Wenyoni, Telament colic drops, and skin cream Antipeol.
The buyer will have the right to manufacture and sell multivitamins under the Vi-Daylin brand under licence.
Other Non-Core Brands
In a separate deal effective 30 September, the purchaser also bought some of Tiger Brands' non-core home and personal care brands including Bio Classic, Bio Crystal, Kair, Fiesta, Black Silk and Eulactol for 161 million rand, inclusive of inventories, the company added.
Tiger Brands will remain the owner of the Purity brand and trademarks, which are associated with its baby nutrition business that sells baby cereal, porridge and fruit pouches, it said.
It has however entered into a limited licence that will allow the purchaser to use the brand for an agreed period of time, it added.
"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," said Kruger.
