To view the PDF file, sign up for a MySharenet subscription.

BID CORPORATION LIMITED - BidCorp Food Africa and Puratos establish a joint venture

Release Date: 07/12/2016 12:45
Code(s): BID     PDF:  
Wrap Text
BidCorp Food Africa and Puratos establish a joint venture

Bid Corporation Limited
(Incorporated in the Republic of South Africa)
Registration number: 1995/008615/06
Share code: BID ISIN ZAE 000216537
(“Bidcorp” or “the Company”)


BIDCORP FOOD AFRICA AND PURATOS ESTABLISH JOINT VENTURE

Bidcorp Food Africa (Bidcorp Food), a subsidiary of JSE-listed Bid
Corporation Limited (Bidcorp), has signed agreements with the Puratos Group
NV (Puratos) whereby Puratos will become an equal shareholder in Bidcorp
Food’s Bakery Solutions Division (BBS).

BBS manufactures and supplies bakery ingredients to industrial bakers, the
craft market and large retailers under the Chipkins and NCP brands in South
Africa

Puratos, a €1.6Bn turnover business, is headquartered in Brussels and
specializes in the development and production, as well as the international
distribution and marketing, of high quality ingredients for the global
bakery, patisserie and chocolate sectors. Puratos employs 7225 people, 840
R&D researchers and technical advisors, with a 2.2% of turnover investment
in R&D. Products are produced in 55 production units in 44 countries, has
subsidiaries operating in 68 countries, marketing and distributing their
products in 100 countries across the globe. Products are demonstrated and
developed at 77 innovation centers in the world.

Bidcorp CEO, Bernard Berson, commented, “The proposed transaction provides
BBS with an opportunity to grow its existing business and to develop new
products and tailor-made solutions for the South African baking industry”.

“This acquisition in South Africa will help us further develop the booming
African market. We want to expand further in Africa. Not only does it help
us strengthen our global presence, but it also gives us the opportunity to
bring the same Puratos quality ingredients to every baker on the continent.
With this investment we also aim to accompany our industrial and retail
customers who look at Africa, just as we do, as the next big frontier,”
says Daniel Malcorps, Chief Executive Officer of Puratos.

The Chief Executive of Bidcorp Food, Klaas Havenga commented, “Though BBS
has been a strong competitor in its market despite the presence of multi-
nationals, the JV will be in a much stronger position on the back of
Puratos’s technical strength and specialized ingredients. This augurs well
for strong future sales growth, especially in market segments of the baking
industry where BBS traditionally was underrepresented. Planned investment
in new product categories and technology are very exciting and will offer
new employment opportunities and learning and development experiences to
current management and staff.”

BBS Managing Director, Nigel Phillips said “Customers will benefit greatly
from the many new product offerings and the enhancements of products due to
access to Puratos’s know-how. The extent of investment that Puratos makes
into R&D is very impressive and will bring many new opportunities to the
market.”

The closing of the transaction is subject to the approval of the South
African Competition authorities; South African Reserve Bank and other
conditions customary to transactions of this nature.
Bernard Berson concluded, “Employees will be exposed to new skills and job
opportunities, innovative products and international best practices.”

December 7 2016
Johannesburg

Sponsor: The Standard Bank of South Africa Limited

Date: 07/12/2016 12:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story