Japanese food producer Ajinomoto Co. has agreed to acquire a 50 percent stake in Turkish peer Kukre for some 60 million Turkish lira ($30 million/22 million euro), the Japanese company said on Tuesday.
Ajinomoto expects the deal to enable it to expand its existing business in Turkey and to diversify into new fields of products to strengthen its future rollout in the Middle East and Central Asia markets, the Japanese company said in a statement.
With the deal, Ajinomoto aims for a market of 5.0 billion Japanese yens ($50.9 million /37.7 million euro), or some two and a half times the current scale, by 2018.
Ajinomoto, which launched a restaurant-use seasonings business in Turkey in 2011, expects a future surge in demand in the country's seasonings and processed foods market which has an annual growth rate of 5.4 percent.
The Japanese company will make Kukre, a producer of seasonings, pickles and other products, its non-equity-method affiliate. Kukre will enhance sales of Ajinomoto's existing products and expand into new fields of original food products using Ajinomoto's food production technology, according to the latter.