Tiger Brands has found a buyer for its baby wellness unit, which houses household brands such as Elizabeth Anne’s, as the group ramps up its portfolio simplification strategy spearheaded by CEO Tjaart Kruger as he looks to turn the fortunes of the company around.
The deal, which does not include the group’s baby nutrition business, is subject to regulatory approvals.
The food producer on Wednesday said it would sell its baby wellbeing business to an unnamed third party for R630m.
Kruger said the deal would include trademarks associated with Elizabeth Anne’s and all trademarks linked to its baby medicinal brands, including Phipps, Muthi Wenyoni, Telament and Antipeol.
Tiger Brands will retain ownership of the Purity brand and trademarks that are associated with its baby nutrition business.
It said it had, however, “entered into a limited licence that will allow the purchaser the use of the Purity brand for an agreed period”.
Kruger said the purchaser of the baby wellbeing business was one of SA’s leading manufacturers of home and personal care products, with an international footprint.
“We are pleased to have reached an agreement with a leading SA manufacturer of home and personal care products for the sale of our baby wellbeing business, which holds a portfolio of iconic wellbeing brands that have been trusted by generations of parents and caregivers,” Kruger said.
“During the past year, we have restructured our business and undertaken an extensive portfolio review to identify business units and categories where there is no longer a financial or strategic fit.
“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.
"We remain committed to further refining the Tiger Brands business through targeted disposals and enabling strategic investments to deliver superior and sustainable long-term returns.”
Tiger Brands, SA’s largest food producer, in August extended the tenure of Kruger for a further three years to the end of 2028.
Kruger’s appointment as CEO in November 2023 — initially for 26 months — marked a shift for the group. Known for his previous successes, including leading Premier Foods’ expansion, Kruger was brought in to steer Tiger Brands through a challenging period.
His leadership has been credited with stabilising the company’s underlying operating profit and providing stakeholders with direction and certainty.
Tiger Brands’ market capitalisation is up 20% this year, valuing the group at R43bn.
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