South African food company Tiger Brands said on Tuesday it had agreed to buy a Kenyan firm, identified by a newspaper as milling and confectionery company Rafiki Mills, in a deal likely worth $25 million.
South Africa’s Business Day newspaper earlier reported Tiger Brands, a maker of bread and breakfast cereal, had agreed to acquire Rafiki for $25 million, quoting corporate affairs group executive Alex Mathole.
Mathole confirmed in a statement that an agreement had been signed, but declined to provide further details.
The acquisition of Rafiki, the fourth-largest miller in East Africa’s largest economy, would be the latest move by Tiger Brands to increase its presence in fast-growing sub-Saharan Africa.
The company acquired 63 percent of Nigeria’s Dangote Flour Mills for $188 million. It already has a presence in Kenya through its Haco Tiger Brands unit.