JOHANNESBURG, SOUTH AFRICA — Rhodes Food Group Pty. Ltd., a wholly-owned subsidiary of Rhodes Food Group Holdings Ltd., has agreed to acquire the food service operation business assets of General Mills South Africa Pty. Financial terms of the transaction were not disclosed.
General Mills launched its South African food service business in 1995 and conducts its manufacturing business from an automated facility in Johannesburg, South Africa. Its products are distributed nationally, primarily to the convenience channel, and include dry and frozen bakery products such as Tubeset muffin batters, croissants, cinnamon scrolls, place-and-bake frozen preformed cookies, frozen pizzas, dry bakery mixes and ready-to-eat muffins. According to Rhodes, General Mills’ food service operation has become “the preferred supplier and leader in muffins to the South African food service market.”
The board of Rhodes Food Group said the acquisition presents an attractive investment opportunity that is aligned with its strategy of expanding its business operations through value accretive acquisitions.
“The board believes that the frozen bakery category complements RFG’s growing pie and pastries business, particularly with its focus on the distribution of these products to the convenience channel, and that good synergies will arise from the acquisition,” Rhodes said.
The transaction is expected to close by Nov. 30.