Following a July announcement of a preliminary decision to exit the South African food service business, General Mills announced that it has agreed to sell its South African food services operations to Rhodes Food Group Pty Ltd, a wholly-owned subsidiary of Rhodes Food Group Holdings Ltd and a top-ten listed food company on the Johannesburg Stock Exchange, for an undisclosed amount.

 

The South African food service business was launched by General Mills in 1995, and manufacturers its nationally distributed products from an automated facility in Johannesburg. Its product line includes dry and frozen bakery products such as croissants, frozen pizzas, Tubeset muffin batters, place-and-bake, pre-made frozen cookies, bakery mixes, and ready-to-eat muffins.

 

The acquisition is well suited to Rhodes Food Group’s strategy of expanding its operations through the process of value-adding asset acquisitions.

 

“The board believes that the frozen bakery category complements RFG’s growing pie and pastries business, particularly with its focus on the distribution of these products to the convenience channel, and that good synergies will arise from the acquisition,” Rhodes said.