Conglomerate George Steuart acquires majority stake in tea firm HVA Foods
View(s):George Steuart & Company Ltd (GS&Co) this week announced its intention to acquire majority control (51 per cent stake) of HVA Foods PLC, one of Sri Lanka’s fast growing and innovative value-added tea exporters.
The transaction, structured under the guidance of NDB Investment Bank, is a strategic move by the George Steuart Group to further expand its portfolio and commitment to the tea and FMCG sectors, both locally and internationally, the company said in a media release.
Interestingly, George Steuart is helmed by media mogul Dilith Jayaweera (its chairman) who is also joint Managing Director of Triad, a large advertising firm. Varuni Amunugama Fernando, the other joint Managing Director of Triad, is the wife of Rohan Fernando, founder-chairman of HVA Foods.
The new addition will not only expand George Steuart’s global reach and export volumes, but also its internationally renowned brand portfolio to include brands such as Heladiv, Infini-t and Tea Plus. GS&Co will thus open its doors to innovative beverage segments such as iced tea, tea cordials, moringa teas and king coconut/aloe vera based drinks. The Heladiv Tea Club will also no doubt complement the group’s well established F&B sector. Under its wings, GS&Co hopes to unlock group synergies to reduce redundancies and cost structures whilst capitalizing on economies of scale in its tea and FMCG sectors, the release said.
Commenting on the new acquisition, Dilith Jayaweera, Chairman of GS&Co said “We are delighted that another globally-recognized local brand will become a part of the George Steuart family, allowing us to push the boundaries of success across the tea and FMCG industries. This move also represents our commitment to driving the local manufacturing industry, adopting newer, diverse value-added products that meet the ever-changing requirements of both local and global consumers.”
“Since 1990, we have taken pride in challenging convention and making the traditional beverage of tea a more versatile product. Being the first iced tea brand in the country, we led the march in inspiring traditional tea exporting concerns to become relevant in the new age” said Rohan Fernando, Founder/Chairman, HVA Foods PLC. “We emphasised the importance of research and development by setting up a dedicated R&D laboratory, which was the first of its kind in the industry.
“Today, we are confident that this strategic acquisition by GS&Co will propel Heladiv into the new global vistas that the brand deserves. It is only through consolidation of likeminded companies and brands with global potential that the Sri Lankan tea industry can reposition itself to its former glory – as the leading tea exporter to the world.
“Continuity and next generation leadership is what our industry needs. I am very happy and keen to see Heladiv go from strength to strength under the GS&Co global banner”, he said.