Ajinomoto to acquire 33.3% stake in Promasidor Holdings

Japan-based seasonings manufacturer Ajinomoto has agreed to acquire a 33.33% stake in Promasidor Holdings, a major processed foods manufacturer is present in 36 African countries.

According to the terms of the share purchase and sale agreement, Ajinomoto will paying $532m (JPY55.8bn) to Promasidor Holdings.

By combining Ajinomoto’s product development capabilities with Promasidor’s sales and distribution network in Africa, both companies seek to become a leading player in the seasonings and processed foods business in the country.

Ajinomoto will also be actively participating in Promasidor’s management and business operations through representation on its board of directors.

Ajinomoto and Promasidor also intend to integrate their Nigerian subsidiaries.

Upon completion of the stake purchase, Ajinomoto plans to make Promasidor an affiliated company accounted for by the equity method.

In 1991, Ajinomoto established West African Seasoning in Nigeria and started Ajinomoto Foods Egypt in 2011. A year later, it commenced its business in Ivoire as Ajinomoto Afrique De L’ouest.

Ajinomoto conducts the seasonings business in Africa with a focus on the AJI-NO-MOTO umami seasoning.

By acquiring a stake in Promasidor, Ajinomoto intends to bolster its business presence and foundation across Africa.

Pomasidor primarily focuses on five countries, including Nigeria, Algeria and Ghana, where it produces and sells powdered milk, powdered beverages, flavour seasonings, cereals and other food products.