The sale of the business follows Tiger Brands' strategic decision in May 2020 to exit the business to better align its portfolio with its strategy, focus on its local market and use resources for its core businesses.

The consortium consists of the Ashton Fruit Producers Co-operative, which brings agricultural sector expertise and insights, and a development finance institution, Tiger Brands, said in a statement.

As part of the sale, Tiger Brands will commit $8.31 million towards a Community Trust, set up at the same time as the new company, with a view to providing socio-economic development initiatives for the local community.

The Community Trust will hold a 10% stake in the company with the consortium holding the remaining equity, the company said.

Tiger Brands also commits to completing an effluent plant upgrade with a further investment of $1.72 million to ensure the operations continue to adhere to environmental regulations, it added.

--Reuters--