UAC of Nigeria Plc, has agreed in principle to form a strategic partnership with Tiger Brands Limited, a leading South African conglomerate.

The partnership is, however, subject to approvals by the shareholders and regulatory agencies.

In the joint venture by both conglomerates, UACN will hold a 51% equity stake, while Tiger Brands will hold 49%. The two companies will exercise joint management control in the venture.

According to Mr. Larry Ettah, UACN’s Group Managing Director, the joint venture will consist of UACN’s food and dairy operations as well as the SWAN water business. These operations are custodians to Nigeria’s heritage brands such as Gala (sausage rolls), Supreme (ice-cream) and SWAN (bottled spring water).

This joint venture provides UACN with the business platform for expansion into fast moving consumer goods product categories in which it already has expertise and other new portfolios relevant to the Nigerian market.

Mr. Ettah said that the management and employees of UACN have transformed the performance of the business over the last few years, putting in place a clear strategy and a strong focus on operational excellence.

He believes that the joint venture will strengthen the position of UACN as a leading player in the Nigerian economy.

He said: “This is a milestone for UACN— the staff, management and stakeholders. UACN is an organisation with a sound strategy and has the potential to grow even further as a partner of the Tiger Brands Group.”

The financial strength and complementary product lines of Tiger Brands will enable us to pursue substantial growth opportunities.

This Joint Venture provides an opportunity to create an industry leader with complementary brands, assets, skills and leading positions in chosen market categories.

It marks a strong focus on our core business and confirms UACN’s strategic intent of transforming into a food-focused conglomerate. I am extremely happy and excited about this partnership and I believe we have a bright future ahead.”

Tiger Brands Limited is the largest food company in South Africa. It has an 85-year track record in the business of manufacturing consumer packaged goods in South Africa and has been listed on the Johannesburg Stock Exchange since 1944.

Tiger Brands, together with its subsidiaries, manufactures, distributes, and markets fast-moving consumer packaged goods in South Africa and internationally. It offers various food products, such as grains under the Ace, Albany, Golden Cloud, Jungle, King Korn, Morvite, and Tastic names; groceries under the All Gold, Crosse & Blackwell, Black Cat, Colmans, Fatti’s & Moni’s, and KOO names; snacks and treats under the Anytime, Beacon, Black Cat, FFWD, Inside Story, Jelly Tots, Maynards, Smoothies, and Wonderbar names; beverages under the Energade, Hall’s, Oros, and Rose’s names; and meat products under the Bokkie, Enterprise, and Like-it-Lean names.

In addition to its South African operations, Tiger Brands has direct and indirect interests in international food businesses in Chile, Zimbabwe, Kenya and Cameroon.
On its part, UACN is a diversified business with activities that span the principal sectors of manufacturing and processing, warehousing and logistics, motor and real estate.  For over a century, the company has remained a foremost private enterprise and leader in the economic advancement of Nigeria.

Having gone through several stages of progressive transformation, UACN has evolved into a food-focused conglomerate with leading brands such as Mr. Biggs, Gala (sausage rolls), Grand Oils, Supreme (ice cream), Swan Natural Spring Water and Gossy Spring Water.

The company’s brand portfolio also includes franchised international food brands such as Nando’s, Creamy Inn, Chicken Inn and Pizza Inn.