Pick ‘n Pay, a leading South African supermarket chain partly owned by the billionaire Ackerman family, has announced the acquisition of the operations of the Tomis group of companies, a prominent abattoir and meat-processing business.
The deal, valued at R340 million ($18.2 million), is a significant move by Pick ‘n Pay to expand its fresh meat offerings and solidify its position in the market.
Under the terms of the agreement, Pick ‘n Pay will obtain 100-percent ownership of the Tomis business operations, with an upfront cash consideration of R323 million ($17.3 million). An additional fixed capped deferred price of R17 million ($912,000) will be payable on the third anniversary of the transaction.
The acquisition aligns with Pick ‘n Pay’s Ekuseni strategy and strategically enhances the company’s fresh meat offerings and customer value proposition.
Established in 1993, the Tomis group of companies is located near Wellington. It specializes in the production, processing, and packaging of high-quality lamb, beef, and other fresh meat products, supplying wholesalers and retailers, including Pick ‘n Pay.
The acquisition brings numerous benefits to Pick ‘n Pay, especially within the meat and butchery product categories. By acquiring Tomis, the supermarket chain aims to strengthen its fresh meat offerings and enhance its overall customer experience.
The completion of the acquisition is subject to various conditions, including regulatory approvals from the Competition Commission and other relevant authorities.
The transaction will be finalized once these conditions are met, as it does not require shareholder approval under the Johannesburg Stock Exchange listing requirements.
Pick ‘n Pay, founded in 1967 by Raymond Ackerman, is presently South Africa’s second-largest retailer. With more than 2,000 stores across eight African countries, Pick ‘n Pay has established itself as a leader in the retail industry. Gareth Ackerman, Raymond’s son and the current chairman of the group, holds a significant 25.53-percent stake in the company.
The acquisition of Tomis will enable Pick ‘n Pay, under the leadership of Ackerman, to further expand its operations and bolster its earnings and revenue.
The company’s already profitable retail business is expected to benefit from consolidating its position in the fresh meat market and enhancing its product offerings.