Ajinomoto Co., Inc. (Ajinomoto Co.) has agreed to acquire all of the shares of Örgen Gıda Sanayi ve Ticaret A.Ş. (Örgen), a major food company in Turkey, and the trademark for its brand Bizim Mutfak, which is widely sold in Turkey, for a total of approximately 220 million TRY (approximately JPY 7.4 billion/$64.22 million).
Ajinomoto Co. signed a share purchase agreement on November 15th 2016 with Yıldız Holding A.Ş. (Yıldız Holding), which owns 51% of the shares of Örgen, and the company’s founders, the Örgen family, who own a 49% stake. With this acquisition, Ajinomoto Co. will strengthen its business foundation and further accelerate its business expansion in Turkey.
The population of Turkey was approximately 80 million as of 2015. Half of the population is 30 years old or younger. The country’s GDP growth rate has averaged about 4% annually over the last three years, and steady growth is expected to continue. Along with economic progress, women’s participation in society has increased in urban areas, which has led to expansion in demand for highly convenient seasonings and processed foods.
Örgen is currently engaged in manufacturing and sales of a wide range of seasonings and foods. Ajinomoto Co. will acquire four of these businesses – bouillon, powdered soups, menu-specific seasonings and powdered desserts. In addition, by obtaining Örgen’s brand Bizim Mutfak, Ajinomoto Co. will strengthen its business portfolio in Turkey.
In its FY2014-2016 Medium-Term Management Plan, Ajinomoto Co. sees Turkey as the starting point for business expansion in the Middle East region. The Ajinomoto Group will continue to contribute to well-being through providing more delicious, higher-quality products adapted to local food cultures and customs.
The proposed transaction is subject to certain conditions including obtainment of the Turkish Competition Board approval.
Turkish law firm, Paksoy advised Ajinomoto in this transaction, with a team led by M. Togan Turan (Partner), together with Nihan Bacanak (Senior Associate), with assistance from Can Aksoy (Associate).
