South African poultry producer Sovereign Foods finalized the acquisition of the former Tydstroom Abattoir in Hartebeespoort, North West. The takeover was approved by the Competition Commission on October 7, and as of October 19 the facility became assimilated into Sovereign Foods current operations.
The company placed the offer to purchase the former Tydstroom Abattoir in Hartebeespoort for ZAR120 million (US$8.9 million), earlier in May. The acquisition comes after an executive and board decision to expand Sovereign Foods’ geographical footprint. The Hartebeespoort Abattoir will give the company better access to Gauteng markets and will improve on established relationships with the company’s Gauteng-based customers. This acquisition will enable Sovereign to increase its operations with 250,000 birds per week.
Sovereign executives and management have made numerous visits to the abattoir and have held various meetings with Tydstroom to assess the facilities and its needs. Sovereign Foods has put a number of plans in place.
The transfer of business only extends to the abattoir, its assets and its staff, and does not include any farming or feed mill operations.
Sovereign Foods began as a family business in 1948 in Rocklands Valley near Uitenhage in the Eastern Cape. Since then, it grew into one of the major poultry producers in South Africa and on the continent. The company has facilities in and around Rocklands Valley, Uitenhage, Port Elizabeth and the Gamtoos River regions.