South African tea company, Joekels Tea Packers, has purchased the tea business of the Coffee Tea and Chocolate (CTC) company from Pioneer Foods. The deal was signed on July 10 and becomes effective on August 3, 2007.
The deal will see Joekels owning and packing all the CTC tea brands for distribution in South Africa, Namibia, Botswana, Lesotho, and Swaziland. It will produce these brands at its factory in Pinetown, KwaZulu-Natal, using equipment that is also being purchased from Pioneer Foods.
Ken Pringle, executive vice chairman and chief executive officer of the UK based Tetley Group, which has a 33.3-per cent stake in Joekels, said: "This acquisition is yet another development in the plans to grow our business around the world. It entrenches the presence of 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 acquisition Jonathan and Joe will be able to make further strides forward."
Joe Swart, who with Jonathan Kelsey is joint founder and owner of Joekels says, "We are very excited by the potential of CTC's strong regional tea brands such as Teeco Tea, Tea Break, and Southalls Rooibos. Being able to make this acquisition demonstrates how Joekels has successfully grown since it was founded 13 years ago."
Joekels is currently the third largest player in the South African tea market with an ambition to grow its business there and in neighbouring countries. The acquisition of CTC's tea assets is expected to increase turnover in the year ending March 2008 by 20 per cent.