“Woolworths and in2food share a more than three-decade history of partnership in creating products of outstanding quality and innovation to meet the evolving needs of our customers,” said Roy Bagattini, CEO of Woolworths, in a statement regarding the acquisition of in2food. This acquisition marks a significant step for Woolworths as it aims to acquire 100% of in2food from its founders and other shareholders, a move that is expected to provide substantial benefits to the company.
The deal will grant Woolworths ownership of a business that generates more than R5-billion in annual revenue. This acquisition is not only a financial investment but also a strategic maneuver to enhance Woolworths’ supply chain and innovation capabilities. Bagattini emphasized the competitive advantage this acquisition provides, stating, “The acquisition gives Woolworths such a significant competitive advantage in this food space that no one else has and can replicate.”
Woolworths is settling the acquisition bill in cash using existing financing facilities, which indicates a strong financial position. The transaction is subject to regulatory and competition approval, a standard procedure in such significant corporate dealings. Woolworths currently accounts for about 80% of in2food’s business, highlighting the already established relationship between the two companies.
In2food operates eight manufacturing facilities across South Africa and employs approximately 8,000 individuals. The management team of in2food will continue to lead the company as a standalone operating business within Woolworths, ensuring continuity and stability during the transition. Bagattini noted, “We see significant future opportunities to come out of the transaction,” suggesting that Woolworths plans to grow in2food’s non-Woolworths revenue both locally and offshore.
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Bagattini also addressed concerns regarding competition, stating, “The non-Woolies revenue here is primarily non-competing, so it’s not really an issue.” This statement reflects Woolworths’ strategic planning in expanding its market presence without jeopardizing its existing customer base. The acquisition comes on the heels of Woolworths selling its entire shareholding in David Jones in 2023, marking a significant shift in its international strategy.
As Woolworths prepares for this new chapter, the company is also facing leadership changes, with CEO Roy Bagattini set to step down at the end of May 2026. The timing of this acquisition could play a crucial role in shaping the future direction of the company under new leadership. While the details of the acquisition are still unfolding, it is clear that Woolworths is positioning itself for growth and innovation in the competitive food market.
Overall, the acquisition of in2food represents a pivotal moment for Woolworths, reinforcing its commitment to quality and customer satisfaction while expanding its operational capabilities. The next steps will depend on regulatory approvals and the strategic execution of integrating in2food into Woolworths’ broader business framework.
