Davita sells its products under three brands: Davita (premium powdered beverages), Jolly Jus (mass market powdered beverage offerings) and Benny (powdered seasonings). Davita has a strong presence in many of the markets in which it operates.
Tiger Brands has identified growth on the rest of the African continent as one of its key strategic thrusts. To this end, a number of transactions were recently announced that will increase the company’s footprint on the rest of the continent. The proposed acquisition of Davita will increase Tiger Brands’ presence on the continent.
After implementation of the acquisition, Tiger Brands intends to retain Davita as a self-standing entity within the Tiger Brands group. The relationship with distributors will not be affected as a result of the proposed acquisition.
The purchase price for the proposed acquisition is estimated to be R1.345bn, based on an enterprise value of R1.625bn, and will be settled in cash.
Source: Tiger Brands
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