06 Jul 2023 Pick n Pay ups its meat game
Pick n Pay has invested R340m to acquire Western Cape-based abattoir and meat processing and packaging company, the Tomis Group, aiming to expand its red meat offering.
The group, whose stock is down 32% year to date, said the transaction will enhance its fresh meat offer to customers.
Tomis’ key assets include a 15,000m2 under-roof lamb feedlot, lamb and beef abattoirs, and a meat packaging plant situated on a 140ha farm in and around the town of Wellington. Tomis has approximately 320 employees and recorded sales of R720m for their 2022 financial year, reported Pick n Pay.
“It operates under the highest animal welfare, food hygiene, ethical, and environmental standards. Tomis owns the ‘TOMIS’ and ‘Roam Free’ trademarks, which are being acquired as part of the transaction.
“Meat and butchery is a key product category for both Pick n Pay and Pick n Pay QualiSave under the group’s Ekuseni strategy,” the retailer stated.
“The acquisition will significantly enhance our fresh meat offering to customers while providing the group with a number of benefits.”
Tomis’ managing director, Laurie Terblanche, is to remain with the group.
The acquisition remains subject to several conditions precedent, including the relevant regulatory approvals, Competition Commission, and others.
With Tomis, the retailer will also have an enhanced ability to develop and roll out innovative, value-added products for customers and reduce red meat costs, unlocking the ability to give customers greater value.
This is in addition to access to a centralised meat packaging, providing a more reliable supply, and unlocking synergies through the Pick n Pay group’s centralised supply chain distribution network.
Lastly, the acquisition is aimed to provide sales growth opportunities, with the potential to supply Pick n Pay franchisees Boxer and other retailers and wholesalers.
Source: IOL.co.za; News24.com