Clover SA will hold 51% of the shares of the new company, Clover Pride, with AECI holding 49%. Clover SA will provide all services to the new entity, including merchandising, sales, marketing and distribution.
Johann Vorster, Clover chief executive, said, “We are excited by this acquisition, which provides further momentum to our objective of expanding Clover’s value-added product offering. The Olive Pride brand shares many touchpoints with Clover, such as consistent high quality, great taste and continued innovation and development. We believe these synergies, coupled with our extensive distribution network and merchandising capability will have a positive impact on both companies.”
AECI chief executive Mark Dytor commented, “The brand division of SCP, through the Olive Pride trademark, has grown exponentially in the recent past. The partnership with one of South Africa’s iconic brands in the newly formed Clover Pride will provide a very useful springboard for growth of the brand and its products, to the advantage of both shareholders.”
Clover Pride will continue to distribute, market and sell products under the Olive Pride brand. Olive Pride is the market leader with a 37.5% market share (based on volume) in the olive oil category.
The transaction, which has already been approved unconditionally by the Competition Commission of South Africa, is scheduled to take effect on 1 March 2017.
