South African tea
company, Joekels Tea Packers, has purchased the tea business
of the Coffee Tea and Chocolate (CTC) company from Pioneer Foods.
The deal was signed on July 10 and becomes effective on August
3, 2007.
The deal will see Joekels owning and packing all the CTC tea
brands for distribution in South Africa, Namibia, Botswana,
Lesotho, and Swaziland. It will produce these brands at its
factory in Pinetown, KwaZulu-Natal, using equipment that is
also being purchased from Pioneer Foods.
Ken Pringle, executive vice chairman and chief executive
officer of the UK based Tetley Group, which has a 33.3-per
cent stake in Joekels, said: "This acquisition is yet
another development in the plans to grow our business around
the world. It entrenches the presence of Tetley in South Africa
and some of its neighbouring countries. Joekels is a successful,
well-run company and we anticipate that with their entrepreneurial
spirit and this new acquisition Jonathan and Joe will be able
to make further strides forward."
Joe Swart, who with Jonathan Kelsey is joint founder and
owner of Joekels says, "We are very excited by the potential
of CTC's strong regional tea brands such as Teeco Tea, Tea
Break, and Southalls Rooibos. Being able to make this acquisition
demonstrates how Joekels has successfully grown since it was
founded 13 years ago."
Joekels is currently the third largest player in the South
African tea market with an ambition to grow its business there
and in neighbouring countries. The acquisition of CTC's tea
assets is expected to increase turnover in the year ending
March 2008 by 20 per cent.
|
