Woolworths moves to buy full stake in in2food in South Africa
Transaction subject to regulatory approval and expected to add to earnings
SOUTH AFRICA – Woolworths Holdings Limited has announced plans to acquire 100% of convenience food manufacturer in2food from its founders, Old Mutual Private Equity, and other shareholders, marking a shift in ownership of one of its longstanding suppliers.
The target company, based in South Africa, produces a wide range of private-label food products spanning ready-to-eat meals, fresh produce, bakery goods, and shelf-stable items, generating more than US$265 million (approximately US$265 million) in annual revenue.
Woolworths Foods currently accounts for the largest share of in2food’s business, while the remaining sales come from domestic and international clients operating across food service and wholesale distribution channels.
Long-standing supplier relationship
Group chief executive Roy Bagattini said the acquisition follows over 30 years of collaboration between the two companies, adding that bringing the supplier in-house is intended to support product development and maintain consistency in its food offering.
In2food chief executive Richard Cooper stated that the companies have worked closely on developing premium food ranges and that the ownership change is expected to maintain that approach while extending the existing relationship.
The management team at in2food will remain in place and continue running operations independently within the Woolworths structure, with the aim of maintaining business continuity and preserving existing operational practices.
Cooper also indicated that the transaction marks the exit of Old Mutual Private Equity and other investors, who have been involved in the business since 2015 and participated in its expansion over that period.
Deal structure and approval process
Woolworths said the purchase will be funded through its current financing arrangements and is expected to contribute positively to group earnings before any cost savings or efficiency gains are realised.
At the same time, the retailer noted that the deal does not represent a shift in its broader sourcing approach, as it will continue working with a network of external suppliers across its food category.
Completion of the transaction remains conditional on standard regulatory and commercial requirements, including approval from South African competition authorities, before the acquisition can be finalised.
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