JAPAN—Maruha Nichiro, a Japanese based seafood processor, is currently in the process of securing a minority stake in Kibun Foods.
Through a recently announced capital and business alliance agreement, Maruha Nichiro announced that it will acquire a 9.9% share in Kibun Foods, amounting to Y2.8bn ($18.4m).
Situated in Ginza, Kibun Foods specializes in the production of fish paste-based products, including a diverse range of Japanese delicacies, noodles, side dishes, and desserts.
Their offerings encompass a variety of well-loved items such as hanpen, kamaboko, gyoza, and chikuwa.
These two features have boosted Kibun, placing it as an industry heavyweight, according to Maruha Nichiro – it had sales revenue reaching Y105.6bn (693 million) in the fiscal year through March.
Marua Nichiro decided to forge this alliance after establishing the mutual goal of expanding their respective food businesses, and therefore decided to use each other’s strengths for growth.
This merger also includes a plan for both companies to embark on joint efforts in new product development, with a focus on enhancing customer value and augmenting the corporate value of both entities.
Both companies aspire to penetrate the international market fully, extending to regions such as North America, Europe, and Asia, where both Maruha Nichiro and Kibun Foods already have a presence and ongoing operations.
Forming this alliance is meant to stream in more sales for Maruha, who were already doing well in the past years.
In its consolidated financial report for the fiscal year ending in March 2023, Maruha Nichiro Corporation revealed that its sales surpassed JPY 1 trillion (equivalent to USD 7 billion or EUR 6.4 billion) for the first time in the company’s history.
Even though it plans to invest heavily in Kibun, Maruha Nichiro anticipates minimal impact on its financial results for the fiscal year through March 2024; they project that the net sales will remain relatively stable at Y1.02 trillion for both companies combined.
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