Tiger Brands has reached an agreement to sell its deciduous canned fruit business, Langeberg and Ashton Foods, to a newly formed company backed by a consortium of fruit growers and a development finance institution. The business, based in Ashton in the Western Cape, employs more than 3 000 permanent and seasonal workers and is a key contributor to the regional economy.
It will be sold as a going concern to the new entity, Langeberg Foods Proprietary Limited, for a nominal R1. In addition, Tiger Brands has committed R150 million to establish a community trust that will hold a 10% beneficial interest in the new company and fund socio-economic development in the Langeberg region.
“We are extremely pleased to announce this sale following an extensive search for a viable buyer over the last five years,” said Tjaart Kruger, CEO of Tiger Brands.
“Langeberg and Ashton Foods is an iconic business founded in 1940 and remains crucial to the economic heartbeat of the Langeberg area. Today’s announcement proves the company’s commitment to securing an outcome that is in the best interest of all stakeholders.”
New grower-led ownership
The new ownership structure includes the Ashton Fruit Producers Co-operative – representing growers from the Robertson, Ceres, Breederivier and Klein Karoo regions – and a development finance partner focused on job creation and sustainable development.
The business produces canned peaches, pears, apricots and other fruit, with over 80% exported to markets such as Europe, China, Australia and Japan.
“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,” said Anthony Dicey, chairperson of the Ashton Fruit Producers Co-operative.
“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.”
FARMER POLL
📢 Which bank is powering your farming journey?
Tell us which bank you use so we can better advocate for the specialised financial tools and accessible capital needed to help South African farmers overcome growth barriers and thrive!
All submissions are kept strictly confidential.
As part of the agreement, Tiger Brands and Langeberg Foods will also enter into a contract manufacturing deal, allowing Tiger Brands to continue sourcing canned fruit for its KOO brand. Tiger Brands will additionally invest R31 million in upgrading the site’s effluent treatment plant to ensure continued compliance with 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,” said Kruger.
The sale agreement follows Tiger Brands’ 2020 announcement of its intention to exit the deciduous fruit processing sector. After two years of initial negotiations failed to secure a buyer, the company extended operations through temporary labour and industry compacts, eventually reopening the sale process in 2022.
According to Tiger Brands, the R150 million community trust “is a notable milestone for the region,” and “aligned with our purpose to nourish and nurture more lives every day,” Kruger added.
The sale remains subject to suspensive conditions, including regulatory approvals from competition authorities, and is expected to be completed in the second half of 2025.
READ NEXT: Land Bank’s revival bears fruit as new-era farmers see gains
