Pick n Pay Announces The acquisition Of Tomis Group
Pick n Pay Announces The acquisition Of Tomis Group. Pick n Pay is pleased to announce that the Group has concluded a sale and purchase agreement to acquire 100% of the business operations of the Tomis group of companies for a purchase consideration of R340 million.
Established in 1993, Tomis is a state-of-the-art abattoir and meat processing and packaging business, supplying lamb, beef and other quality fresh meat products to wholesalers and retailers, including Pick n Pay. Tomis’ production facilities are situated near Wellington, approximately 100km from Cape Town.
Tomis’ key assets include a 15,000m2 under-roof lamb feedlot, lamb and beef abattoirs, and a meat packaging plant situated on a 140-hectare farm. Tomis has approximately 320 employees, and recorded sales of R720 million for their 2022 financial year. It operates under the highest animal welfare, food hygiene, ethical, and environmental standards. Tomis owns the ‘TOMIS’ and ‘Roam Free’ trademarks, which are being acquired as part of the transaction. Meat and butchery is a key product category for both Pick n Pay and Pick n Pay QualiSave under the Group’s Ekuseni strategy.
The Acquisition will significantly enhance the Group’s fresh meat offer to customers, while providing the Group with the following benefits: A higher-quality, more consistent, red meat offer, a category that is a key element of its customer value proposition; an enhanced ability to develop and roll out innovative, value-added, products for customers; a reduced cost for red meat, unlocking the ability to give customers greater value; centralised meat packaging, providing a more reliable supply, and unlocking synergies through the Group’s centralised supply chain distribution network; and sales growth opportunities, with the potential to supply Pick n Pay franchisees, Boxer, and other retailers and wholesalers.
