Tiger Brands to invest in overseas acquisitions

Tiger Brands, South Africa’s leading food company, plans to invest $470m in overseas acquisitions in 2012, to counterbalance the lack of domestic demand.

According to the company, businesses outside South Africa will represent 20% of its income over the next three to five years.

The company is looking at acquisitions mostly in Africa, with Nigeria being the most important market in the continent.

During the 12 months through September, Tiger brands invested R2.1bn ($246m) to buy stakes in companies outside South Africa, which includes the purchase of 49% equity stake in Nigeria-based UAC Foods in May as well as 100% stake in biscuit company Deli Foods Nigeria in April.

The company, which produces bread, breakfast cereal and energy drinks, posted a 5.8% rise in revenue to R20.4bn ($2.39bn) infiscal 2011 from the previous year.