South Africa’s Woolworths to buy $300 million convenience foods supplier, in2food

South African retailer Woolworths Holdings Limited said Tuesday it has agreed to acquire 100 percent of in2food Holdings Proprietary Limited, a supplier of high-quality convenience foods. The deal reflects Woolworths’ focus on strengthening key parts of its premium food value chain. in2food, operating through its subsidiary in2food Group Proprietary Limited, has supplied Woolworths Foods for more than 30 years. 

Deal strengthens innovation, supply efficiency

in2food produces fresh convenience foods, bakery items, ambient products, long-life categories, and fresh produce, generating over R5 billion ($300 million) in annual revenue. Woolworths is in2food’s largest customer, while the remainder of its sales are distributed among local and international food service and wholesale clients. The group runs eight manufacturing facilities, producing more than 3.2 million packs each week.

For the transaction, advisers to Woolworths include Pinehurst Partners, PwC South Africa, Webber Wentzel, and Investec Bank Limited, while advisers to in2food include Rand Merchant Bank and DLA Piper. The retailer said the cash-funded acquisition is expected to boost earnings and strengthen supply chain efficiency, innovation, and responsiveness, while preserving in2food’s entrepreneurial culture under its existing senior management. The deal remains subject to regulatory approvals, including clearance from the competition authority.

Roy Bagattini finalizes growth moves before exit

Founded in 1931, Woolworths operates a diversified retail portfolio covering fashion, beauty, homeware, and food across South Africa, Australia, and parts of sub-Saharan Africa. The acquisition represents one of the final strategic decisions of Group CEO Roy Bagattini, who is set to step down on May 31, 2026, though he will remain during a transition period to ensure a smooth leadership handover.

Bagattini, who joined Woolworths in 2020, guided the retailer through a period of financial consolidation and strategic focus, including the sale of the Australian department store chain David Jones. He also oversaw the launch of Woolworths Ventures, the acquisition of Absolute Pets, the company’s first share buyback program, and the repositioning of the apparel division. Under his leadership, Woolworths strengthened its balance sheet and reinforced social and economic initiatives in the communities it serves.

Sam Ngumeni tapped to drive growth

To succeed Bagattini, the board has appointed Sam Ngumeni, a veteran executive with nearly 30 years at Woolworths. Currently CEO of the company’s food division, Ngumeni has driven above-market growth and strengthened its leadership in South Africa’s premium grocery segment. His career spans multiple senior roles, including Group COO, Director of HR and Transformation, and CEO of Woolworths Financial Services, with responsibilities across supply chain, logistics, online retail, data analytics, real estate, and African operations.