Japanese seasonings and frozen food producer Ajinomoto Co. Inc. said Aug. 21 that it has agreed to acquire a 50.1% equity stake in U.S. sauces producer More Than Gourmet Inc. from Culinary Group Holdings LLC to enhance its business in North America.
Financial terms of the transaction were not disclosed, but according to data from S&P Global Market Intelligence, the deal is valued at about ¥3.8 billion.
Ohio-based More Than Gourmet was established in 1993 and employs about 50 employees. It has a capital of $12.6 million. Culinary Group Holdings, which owns 100% of the business, will retain its 49.9% holding in More Than Gourmet when the deal closes.
Ajinomoto seeks to take advantage of the growing business-to-business market for prepared takeout food, foodservice and restaurants in the U.S., which it estimates to be worth $18.3 billion. The company said the U.S. accounts for about 40% of the global market for this line of business.
Ajinomoto added that liquid seasonings like stocks, broths and sauces are becoming popular in the U.S. foodservice and restaurant market, versus powdered seasonings due to their convenience.
The Tokyo-based company produces a wide range of powdered seasonings and condiments across Asia, Europe and Africa and the Americas, whereas More Than Gourmet manufactures and sells stocks, broths and sauce concentrates.
Ajinomoto said it will use More Than Gourmet's connections with processed food manufacturers and foodservice and restaurant companies to expand in the U.S. through its subsidiary, Ajinomoto Health & Nutrition North America Inc. It also plans to establish a new "specialty" as a result of the acquisition.
The company said the impact of the deal on Ajinomoto's business results for fiscal 2019 will be immaterial.
As of Aug. 20, US$1 was equivalent to ¥106.38.
