PARSIPPANY, N.J., Oct. 5 -- Nabisco Holdings Corp. announced Thursday it will move back into South Africa with the purchase of a 50 percent interest in Royal Beech-Nut Ltd. from Delfood for an undisclosed price. Royal Beech-Nut had been a subsidiary of Nabisco, which sold it to Delfood in 1989, when South Africa operated under apartheid.
'We are pleased to be returning to South Africa through this partnership with Delfood,' said James J. Postl, president and chief executive officer of Nabisco International. 'Royal Beech-Nut is a strong company. Its quality brands make it a leader in South Africa, which is an increasingly important market.' RBN had sales of nearly $65 million last year. It has the rights in South Africa to Beechies gum, Lifesavers candy, and Royal dessert mixes. 'Through this partnership, Nabisco will provide RBN with access to its innovative manufacturing technology and new product development capability that will expand its market position in South Africa,' Postl said. 'RBN operations will also be used to produce Nabisco products both for the local and regional markets.' The transaction is expected to be completed by the end of October. RBN's product line includes dry mix desserts, confectionery, biscuits, baking powder and fruit drinks. It has production facilities in Chloorkop and Isando and has operated in the South African market since 1929.
