The sale, which comes five years after Tiger Brands announced its intended exit, is to a newly formed company (Newco) established by a capable and committed consortium comprised of parties with a vested interest in the sustainability of Langeberg and Ashton Foods and a cooperative of fruit growers in the Ashton area (the Consortium) who bring agricultural sector expertise and insights.
Based in Ashton in the Western Cape, the business provides employment to more than 3,000 permanent and seasonal employees and is an important contributor to the region’s economy.
The sale of Langeberg and Ashton Foods follows a strategic decision taken by Tiger Brands in May 2020 to exit the business to better align its portfolio with the Group’s stated vision.
The Consortium consists of the Ashton Fruit Producers Co-operative, as well as a development finance institution with a mandate for job creation, improving livelihoods, and supporting the transition to net zero.
The Ashton Fruit Producers Co-operative, established in 2020, is made up of member producers from the Robertson, Ceres, Breederivier and Klein Karoo areas.
Tiger Brands will sell the Langeberg and Ashton Foods business as a going concern to the NewCo for a total cash consideration of R1 (one Rand).
As part of the sale, Tiger Brands will commit R150m towards the establishment of a Community Trust that will benefit the broader Langeberg community through socio-economic development initiatives, which amount will be advanced upon implementation of the transaction. The Community Trust will ultimately hold a beneficial interest equal to 10% shareholding in the NewCo, with the Consortium holding the balance of the equity.
“We are extremely pleased to announce this sale following an extensive search for a viable buyer over the last five years. Langeberg and Ashton Foods is an iconic business founded in 1940 and remains crucial to the economic heartbeat of the Langeberg area.
Today’s (16 May 2025) announcement proves the company’s commitment to securing an outcome that is in the best interest of all stakeholders. The success of this sale will ensure the sustainability of the South African deciduous fruit industry and consequently improve the livelihoods of the Langeberg and Ashton Foods employees and the broader communities in these areas,” says Tjaart Kruger, CEO of Tiger Brands.
“Tiger Brands has been part of the Langeberg region and its communities for many decades. The establishment of the Community Trust is a notable milestone for the region, as Tiger Brands remains committed to the distribution of social and economic benefits to the community of Langeberg, long after our exit. This contribution is aligned with our purpose to nourish and nurture more lives every day,” says Kruger.
“Over time, a fruit canning factory such as Langeberg and Ashton Foods becomes integrated into the community and the local fruit growers that supply it. It has been a long journey to find the right partner with the ability and financial capacity to ensure the continued and sustainable operation of the Langeberg and Ashton Foods business.
All of these efforts culminated in the signing of the sale of business agreement, paving the way for the newly established NewCo or Langeberg Foods Proprietary Limited to enter an exciting new era of supplying consumers with its well-known quality products,” says Anthony Dicey, chairman of The Ashton Fruit Producers Co-operative.
Langeberg and Ashton Foods is part of Tiger Brands’ International segment. It produces canned fruit and purees for export markets (greater than 80% of the business) and supplies the Tiger Brands Culinary Business Unit with canned fruit under the KOO brand, which is sold in the Southern African markets.
As part of the sale, Tiger Brands and NewCo will enter into a contract manufacturing agreement for the purchase of canned fruit under its KOO brand.
In line with its values of being a responsible corporate citizen, Tiger Brands will also complete an effluent plant upgrade with a further investment of R31 million, ensuring the operations continue to adhere to environmental regulations.
“The conclusion of the sale marks a significant milestone in Tiger Brands’ portfolio optimisation strategy and will enable management to deploy capital and drive focus on the core business that can deliver sustainable growth,” says Kruger.
The sale of business agreement is subject to suspensive conditions customary for a transaction of this nature, including, but not limited to, obtaining the required approvals from the relevant Competition authorities. The sale is expected to be completed within the second half of this year.
