Seafood producer Sea Harvest Group has entered the dairy market for the first time, as it has acquired South African dairy company Ladismith Cheese for ZAR527 million ($35.8 million).
Ladismith Cheese produces a range of dairy products for the South African market, including various cheeses, powdered milk and butter products.
Sea Harvest claims that the acquisition will diversify its product offering, and will allow the company to capitalise on the growing demand for dairy products in South Africa.
Sea Harvest group CEO, Felix Ratheb said: “Ladismith Cheese exhibits strong fundamentals. It is a profitable, branded fast moving consumer goods food manufacturer of significant scale in the food and agricultural sector.
“It has a long track record, strong national brand and a proven management team. In our opinion, the dairy sector is expected to experience continued growing demand for cheese and butter in response to consumer dietary changes towards natural fat products.
“The recent completion of the Viking Fishing and Aquaculture transaction and now the acquisition of Ladismith Cheese is in line with our strategic objectives, with both these transactions meeting our investment criteria.”
Fred Robertson, chairperson of Sea Harvest Group’s majority shareholder Brimstone, added: “The acquisition of Ladismith Cheese will provide Sea Harvest, through its wholly-owned subsidiary company, Cape Harvest, with an ideal platform from which to build on in the dairy sector through the development and acquisition of additional dairy and allied beverage products.”
© FoodBev Media Ltd 2019
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