July 1 (Bloomberg) -- Rainbow Chicken Ltd., South Africa’s largest poultry producer, has agreed to buy a further 23.9 percent stake in New Foodcorp Holdings (Pty) Ltd. as it seeks to diversify its product range.
The 393 million rand ($40 million) transaction will increase Durban-based Rainbow’s stake in Foodcorp, which owns brands such as Glenryck canned fish and Nola mayonnaise, to 88.1 percent.
The acquisition of Foodcorp will help to “counter the cyclical nature of the chicken industry,” Rainbow said in a statement today. The company said in February that first-half earnings fell almost 75 percent as rising imports, high costs and oversupply in its domestic market eroded margins.
Rainbow acquired 64.2 percent of Foodcorp in April through its unit Capitau Investment Management Pty.
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