Tata Tea buys minority stake in South African tea company Joekels

Tata Tea Ltd has informed BSE that the Company subsidiary, The Tetley Group, has signed a definitive agreement to acquire a 33% stake in South African tea company, Joekels Tea Packers. The Tetley Group has funded the acquisition.

Joekels is the third largest player in the South African tea market with a 5% value share of the market, and turnover of $5m. The company is owned and run by Jonathan Kelsey and Joe Swart, who founded it in 1994.

Joekels manufactures and sells a strong portfolio of brands spanning the economy and mainstream tea sectors. Joekels main brands are two mainstream ranges, Phendula Tips and Rooibos Laager, the economy Tea Time range, Tea4kidz, which comprises special blends for children, and a recent launch, San Aqua, which is a Rooibos ice tea.

Joekels will have a licence to sell tetley branded products in South Africa, Namibia, Botswana, Lesotho and Swaziland. They will produce these at their factory in Pinetown, Kwazulu Natal province.

In a statement, Ken Pringle, Executive Vice Chairman and Chief Executive Officer of the Tetley Group, and director of the Company Said :

"This acquisition is yet another development in our plan to grow the Tata Group’s tea business around the world. It establishes a presence for Tetley in South Africa and some of its neighbouring countries. Joekels is a successful well run company and we anticipate that with their entrepreneurial spirit and this new investment from Tetley, Jonathan and Joe will be able to accelerate Joekels growth."

Source : Equity Bulls

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