Pick n Pay announced on Wednesday that it has concluded a deal to acquire 100% of the business operations of the Tomis group of companies for R340 million.
In a statement, the group said it will acquire 100% of the Tomis business operations, and this will be split into an upfront cash consideration of R323m, and a fixed capped deferred price of R17m payable on the third anniversary of the transaction.
“Tomis’ managing director, Laurie Terblanche, is to remain with the group,” it said.
According to the group, the acquisition remains subject to several conditions precedent, including the relevant regulatory approvals, Competition Commission, and others.
The group said the acquisition was not a categorised transaction for the JSE listing requirements and, therefore, shareholder approval was not required.
Established in 1993, Tomis is a state-of-the-art abattoir and meat processing and packaging business, supplying lamb, beef, and other quality fresh meat products to wholesalers and retailers, including Pick n Pay.
“Tomis’ production facilities are situated near Wellington, approximately 100km from Cape Town. Tomis’ key assets include a 15,000m2 under-roof lamb feedlot, lamb and beef abattoirs, and a meat packaging plant situated on a 140-hectare farm.
“Tomis has approximately 320 employees and recorded sales of R720 million for their 2022 financial year. It operates under the highest animal welfare, food hygiene, ethical, and environmental standards. Tomis owns the ‘TOMIS’ and ‘Roam Free’ trademarks, which are being acquired as part of the transaction,” Pick n Pay said.
BUSINESS REPORT