South African retailer Woolworths Group (WHLJ.J) announced on Tuesday that it has agreed to acquire privately held in2food Holdings for an undisclosed sum, as part of its strategy to better control the quality and supply of its premium convenience food products, Reuters reported.
The acquisition reflects a broader trend of retailers integrating their supply chains to improve resilience amid ongoing cost pressures and logistics risks.
Woolworths will purchase 100% of in2food from the company’s founders, Old Mutual Private Equity, and other shareholders, the retailer said in a statement.
The purchase price will be paid in cash using Woolworths’ existing funding facilities. Woolworths expects the acquisition to boost earnings immediately, even before any potential cost savings or operational improvements are realized.
In2food is a cornerstone of Woolworths’ reputation for high-end, ready-made meals, which is one of the retailer’s strongest profit drivers.
Woolworths Group CEO Roy Bagattini said the deal strengthens a three-decade partnership between the companies and brings a “key strategic capability closer to the Woolworths Foods business.”
Richard Cooper, CEO of in2food, added that the acquisition enhances Woolworths’ “ability to protect product quality, innovation and availability.”
Don’t Miss This:
South African Retailer Pick N Pay’s Founders Sell 64 Million Shares, Lose Majority Control
The food producer is one of Woolworths Foods’ largest suppliers, generating more than 5 billion rand ($299 million) annually from private-label convenience meals, fresh produce, long-life products, and bakery items.
While Woolworths is in2food’s largest customer, the company also supplies local and international clients, including Marks & Spencer, across food service and wholesale markets.
Woolworths said the management team at in2food will remain in place and continue running the business as a standalone unit within the retailer.
Bagattini emphasized that the acquisition does not signal a shift in Woolworths’ broader sourcing model, noting that supplier relationships will continue to be central to its differentiated food offerings.
Don’t Miss This:
South African Fashion Retailer TFG Posts 21.3% Fall In Half-year Profit
Image Credit: CNBC Africa
