Philafrica Foods acquires majority stake in local Niknaks manufacturer, Pakworks
Centurion, 2 July 2018– Philafrica Foods, one of the largest food processing companies in South Africa, has announced its acquisition of a majority shareholding in Pakworks, following approval by the Competition Tribunal.
Pakworks currently manufactures snacks under the popular Niknaks and Simba brand names for PepsiCo on a national level, with its manufacturing facility based in Heilbron in the Free State. It employs 609 people. A new production line that will manufacture snacks for the Simba brand is set be operational soon.
According to Roland Decorvet, the CEO of Philafrica, the acquisition will allow Philafrica to partner with one of its important Milling customers. “Pakworks is a key client of our yellow maize Milling Business; through diversifying the business model, by moving down the supply chain, we will drive additional value. We welcome the Pakworks team to Philafrica Foods and look forward to a long and profitable partnership.”
This transaction marks an additional investment for Philafrica, following the announcement in October last year that it had entered into a 50/50 joint venture with Novos Horizontes, an integrated chicken producer located in northern Mozambique, and its acquisition of a majority stake in The Dutch Agricultural Development & Trading Company’s (DADTCO) cassava processing activities. DADTCO has pioneered an innovative mobile cassava processing technology that is having a major positive impact on Africa’s smallholder farmers.
Decorvet added that the company continues to actively seek investment opportunities on the continent, which forms part of Philafrica Foods’ planned investment of between R1 billion and R1.5 billion over the next 18-24 months in Africa.
Philafrica Foods is supported by the AFGRI Group, an investment holding company focused on food and agriculture with an underlying ethos as an enabler of food security in line with the Philafrica vision.