Tiger Brands plans to divest processed meats business

South African food company Tiger Brands is reportedly considering selling its processed meats business.

The company’s meat business was closed last year after the South African Health Ministry confirmed the listeria outbreak started at the company’s Enterprise Foods facility.

Tiger Brands is currently facing a class-action lawsuit filed by human rights lawyer Richard Spoor, in which he notes that there is enough evidence against the company.

In 2017, the company announced that it plans to close its Value Added Meat Products (VAMP) division as part of a strategic review. Tiger Brands concluded that VAMP is no longer an ideal fit within its portfolio.

Tiger Brands added that it has received ‘several indicative offers’ and its board have started formal due diligence.

The company’s statement reads: “The unfortunate events of 2018, which led to the temporary closure of the manufacturing facilities, delayed this evaluation.”

“With the business having reopened at the beginning of the 2019 financial year, the board considered it appropriate to initiate the review, which confirmed that the VAMP business was not an ideal fit within the Tiger Brands portfolio and that consideration is given to exiting the category by way of disposal.”

Tiger Brands also stated that it will close its Deli Foods in Nigeria after the business continued to suffer losses despite managerial efforts. Operations of its Nigerian Deli Foods are said to have concluded last month and formalities regarding the closure will be completed over the next few months.