TURKEY – Leading American multinational food company Kraft Heinz has agreed to acquire Turkish sauce company Assan Foods from Kibar Holding in a deal that will bolster the company’s presence in Europe, Middle East, and Africa (EMEA).
According to a statement from the maker of popular Heinz tomato ketchup, the planned acquisition of Assan from KIbar Holdings values Assan at approximately US$100 million.
Headquartered in Istanbul, Assan Foods manufactures and sells a wide range of sauce products such as ketchup, mayonnaise, pasta sauces and more.
Assan Foods has acted as a certified production partner for Kraft Heinz since 2019, operating manufacturing facilities in Balikesir and Izmir in Turkey.
The company employs approximately 400 workers and exports its products -sold under brands including Colorado, Kingtom, and Oba. – to around 50 countries.
A statement from Kraft Heinz claims that the purchase of Assan provides Kraft with the opportunity to further expand its retail and foodservice business across Europe, the Middle East and Africa.
“This is a great opportunity to accelerate our international growth strategy centered on Taste Elevation,” said Rafael Oliveira, International Zone President at Kraft Heinz.
“We believe Assan Foods is a high-performance organization that brings best-in-class local innovation and production of sauces and tomato products.”
With the acquisition, Kraft Hopes to leverage Assan’s significant distribution network in the fast-growing foodservice channel to further build scale and agility by expanding the Heinz brand in Turkey, as well as International Taste Elevation platform more broadly.
The deal is subject to customary closing conditions, including regulatory approval, and is expected to close in the second half of 2021.
The agreed purchase of Assan comes just a week after Kraft Heinz announced plans to invest £140 million (about US$199 million) in its Kitt Green food manufacturing facility in the UK, further enhancing its international manufacturing operations.
The company stated that the proposed investment would be its largest in more than two decades in an existing manufacturing site outside of the US.
The plans for the Kitt Green plant northwest of Manchester would be aimed at adding production of Heinz ketchup, mayonnaise and salad cream.
The money will also fund equipment and technology and create up to 50 new full-time jobs, the company said.
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