The Kraft Heinz Company has announced that it has reached an agreement to purchase Assan Foods from the privately held Turkish conglomerate Kibar Holding in a deal that values the enterprise at approximately $100 million (€82.7 million).
The transaction is subject to customary closing conditions, including merger control approval, and is expected to close in the second half of 2021, the company added.
Assan Foods, which offers a portfolio of sauces, operates local manufacturing facilities in Balikesir and Izmir, that have been certified production partners for Kraft Heinz since 2019.
The deal will offer Kraft Heinz the opportunity to build its retail and foodservice business across Europe, the Middle East and Africa.
'A Great Opportunity'
Rafael Oliveira, International Zone President at Kraft Heinz, described the acquisition as "a great opportunity" to accelerate Kraft Heinz's international growth strategy.
He added, "We believe Assan Foods is a high-performance organisation that brings best-in-class local innovation and production of sauces and tomato products, as well as a significant distribution network in the fast-growing foodservice channel, enabling us to further build our scale and agility by expanding the Heinz brand in Turkey, as well as our International Taste Elevation platform more broadly."
The Istanbul headquartered Assan Foods was established in Balikesir in 1998 as a Kibar Holding investment in the food sector.
A Wide Range Of Products
It evolved into one of the top producers in the region, offering a wide range of products, including tomato paste, ketchup, mayonnaise, and pasta and meat sauces that complement various international cuisines.
The products are sold under brands such as Colorado, Kingtom, and Oba, as well as private labels.
With approximately 400 employees, Assan Foods serves the domestic market and exports to around 50 countries across four continents.
