Woolworths to acquire in2food, enhancing premium food offerings

Woolworths Holdings Limited (WHL) announced on Tuesday its plan to acquire 100% of the shares in in2food, a privately-owned prepared foods manufacturer, from its founders, Old Mutual Private Equity, and other exiting shareholders.

This acquisition aims to bolster Woolworths Foods’ strategic capabilities and deepen its relationship with a key supplier.

in2food is a leading provider of high-quality convenience foods, generating over R5 billion in annual revenue through a diverse range of premium private label products, including freshly prepared meals, fresh produce, and bakery items.

Woolworths Foods is in2food’s largest customer, with other clients spanning local and international food service and wholesale sectors.

Woolworths Group CEO Roy Bagattini highlighted the longstanding partnership between the two companies, stating, “This acquisition represents a compelling opportunity to bring a key strategic capability closer to the Woolworths Foods business, strengthening one of the core points of differentiation in our premium food offering.”

The experienced leadership team at in2food will continue to operate the business autonomously within Woolworths, ensuring continuity and preserving the entrepreneurial culture that has driven its success.

Richard Cooper, CEO of in2food, expressed enthusiasm about the transaction, noting, “The transaction further enhances Woolworths Foods’ ability to protect product quality, innovation, and availability, which are core to its differentiated customer proposition.”

Cooper also acknowledged the support of outgoing shareholders, stating, “We would like to thank the outgoing shareholders for being very supportive partners, contributing meaningfully to the commercial rigour applied to key decisions along in2food’s growth journey since 2015.”

Bagattini clarified that the acquisition will not alter Woolworths’ broader food sourcing model, emphasising the importance of supplier relationships in delivering premium offerings.

He stated, “This transaction further enhances the relationship we have with one of our most innovative suppliers and will extend mutual benefits to our entire value chain and end-customers.”

The acquisition is expected to be earnings accretive for Woolworths, even before realising anticipated operational efficiencies.

The purchase will be financed through existing facilities, with the completion of the transaction contingent upon regulatory approvals and customary conditions, including clearance from South Africa’s competition authorities