UAC of Nigeria (UACN), a Nigerian diversified company, and Tiger Brands, a South African fast-moving consumer goods firm, have concluded a deal to form a strategic partnership in which UACN will hold a 51% equity stake in the joint venture and Tiger Brands will hold 49%.
Nigeria’s Weekly Trust newspaper reports that shareholders endorsed the deal at an Extraordinary General Meeting (EGM) held in Lagos at the end of last year.
The joint venture will consist of UACN’s food and dairy operations as well as the SWAN water business. These operations are custodians to Nigeria’s heritage brands such as Gala (sausage rolls), Supreme (ice-cream) and SWAN (bottled spring water).
A UACN press release dated 23 November 2010 stated that the two companies will exercise joint management control in the venture.
“This joint venture provides UACN with the necessary business platform for expansion into fast-moving consumer goods product categories in which it already has expertise and other new portfolios relevant to the Nigerian market,” the company said.
The acquisition specifically excludes the franchised quick service restaurants of UACN.
Tiger Brands recently also announced the purchase of Deli Foods Nigeria Limited, a company engaged in the manufacturing and marketing of biscuits for the Nigerian market.