Nutrition, health and wellness group Nestlé, said on Friday that it had concluded the sale of its South African Crosse & Blackwell mayonnaise business to consumer foods group Tiger Brands.

Terms of the sale agreement would see Tiger Brands take ownership and management of the Crosse & Blackwell mayonnaise production plant in Bellville, Cape Town.

The sale is the result of a closed bidding process and follows several months of discussion with a range of potential partners – including a number of black-owned business consortiums.

Tiger Brands agreed to a secure future for the approximately 100 employees currently employed at the plant.

"The sale of an asset of this nature is not a decision that is taken lightly," said Nestle South Africa chairman and MD, Yves Manghardt.

"In line with our business objective of focussing on value added nutrition, health and wellness products, we regularly review the composition of our portfolio, in particular, products and/or categories that are not in line with our long term strategic direction. The sale of our mayonnaise business accords with this approach," Manghardt said.

Tiger Brands CEO Peter Matlare said Crosse & Blackwell mayonnaise would be a welcome addition to the Tiger Brands stable.

"The acquisition of the Crosse & Blackwell business was entirely consistent with the expressed strategy of Tiger Brands in seeking appropriate local acquisition opportunities that involve leading brands. Tiger Brands will continue to evaluate local and other African opportunities," he concluded.

The transaction is subject to regulatory approvals.

At 2.23pm Tiger Brands had added 1.37 rand, or 1.05 percent to 131.97 rand on the JSE.

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