The deal saw the South African manufacturer’s subsidiary Pioneer Food UK purchase 100% of the issued share capital of The GoodCarb Food Company, owner of the Lizi’s brand.
Pioneer Foods UK has been manufacturing Lizi’s products under contract for GoodCarb and has helped co-develop products for the company.
The acquired company will continue to run its sales and marketing functions separately to Pioneer’s existing business, operating from its current site in Cardiff.
Pioneer Foods ceo Tertius Carstens said the purchase of Lizi’s was in keeping with the company’s strategy.
‘Pioneer Foods family’
“Lizi’s granola is a very popular brand thanks to its healthy and wholesome product attributes and we’re thrilled to welcome it into the Pioneer Foods family,” said Carstens.
“This purchase is in line with our strategic plans for acquisitions in geographies and categories where we have an existing presence. We are confident that this deal will benefit both the Lizi’s business as well as our own, given the synergies between the companies.”
Carstens called granola one of the fastest growing categories within the UK cereal sector, which created a unique and beneficial opportunity for Pioneer Foods.
“Lizi’s is the fastest growing brand in the UK’s fast accelerating granola category,” he added. “The brand has shown exceptional growth over the last three years and is now the number two brand in its category.”
‘Fast accelerating granola category’
Pioneer Foods is one of the largest South African food and beverage manufacturers publicly listed on the Johannesburg Stock Exchange.
Formally Bokomo Foods UK, Pioneer’s UK operation manufactures own-label breakfast cereals – such as wheat biscuits, granola and muesli – for a number of UK retailers.
Pioneer’s acquisition of GoodCarb follows the purchase of fruit snack manufacturer Stream Foods from owner Well Foods in August for a reported £7.5M.
Meanwhile, earlier this week, confectionery manufacturer Aldomak acquired The Handmade Meringue Company for an undisclosed sum, as it secured its first export order.