Tiger Brands to Sell Baby Wellbeing Business but Retains Purity Brand

Tiger Brands to Sell Baby Wellbeing Business, Retains Purity Brand

South Africa’s largest food producer, Tiger Brands (TBSJ.J), has announced the sale of its Baby Wellbeing business for R605 million. This decision comes after an extensive portfolio review, as the company aims to simplify its operations and intensify its focus on its core Baby Nutrition segment, which includes the Purity brand.

What’s Included in the Sale?

The Baby Wellbeing business being sold includes:

• Elizabeth Anne’s baby toiletries
• Medicinal products like Muthi Wenyoni antacid, Telament colic drops, and Antipeol skin cream
• Licensing rights to manufacture and sell Vi-Daylin multivitamins

In addition, inventories related to the Baby Wellbeing business, valued at approximately R25 million, will also be transferred to the unnamed buyer.

Who is the Buyer?

The buyer, whose identity has not been disclosed, is described as one of South Africa’s leading manufacturers of home and personal care products.

Exclusions and Strategic Focus

Tiger Brands clarified that the sale does not include its Purity brand, which is central to its Baby Nutrition business. The Purity line offers baby cereals, porridge, and fruit pouches, areas where the company believes it holds a competitive advantage.

Group CEO Tjaart Kruger stated, “This transaction marks another milestone in the simplification of our portfolio and will enable us to intensify our focus on the Baby Nutrition business, a core area where we believe we have a clear competitive advantage.”

Additional Portfolio Changes

In a separate deal effective September 30, the buyer also acquired several non-core home and personal care brands from Tiger Brands for R161 million, inclusive of inventories. These brands include:

• Bio Classic
• Bio Crystal
• Kair
• Fiesta
• Black Silk
• Eulactol

What This Means for Tiger Brands

The sale is part of Tiger Brands’ broader strategy to streamline its operations and focus on high-value segments. By retaining the Purity brand, the company underscores its commitment to the baby nutrition market, a segment with significant growth potential.

The deal highlights Tiger Brands’ approach to restructuring while maintaining a strong presence in its core markets.