The U.S.-based food and beverage company Kraft Heinz has reached an agreement to purchase Assan Foods from privately held conglomerate Kibar Holding in a deal that values the enterprise at approximately USD 100m, according to a statement from Kraft Heinz.
The deal is subject to customary closing conditions including merger control approval, and is expected to be completed in the second half of 2021.
“Assan Foods has served as a model in terms of the sustainable growth in the sector with its innovative and increasing product range and customer satisfaction at home and abroad,” said Ali Kibar, Chairman of the Board of Directors of Kibar Holding.
Kraft Heinz considers the acquisition as an opportunity to accelerate its international growth strategy centered on Taste Elevation, according to Rafael Oliveira, International Zone President of Kraft Heinz.
“We believe Assan Foods is a high-performance organization 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,” he added.
The transaction will be one of important steps for Kibar Holding to create resources, focus on large scaled and high value-added investments and collaborations in the advanced technology fields, according to Haluk Kayabasi, CEO of Kibar Holding.
Headquartered in Istanbul, Assan Foods was established in Balikesir in 1998 as a Kibar Holding investment in the food sector. Assan Foods manufactures and sells a wide range of products including tomato paste, ketchup, mayonnaise, and pasta and meat sauces. With approximately 400 employees, Assan Foods serves the domestic market and exports to around 50 countries on four continents.
Kibar Holding, which employs 5,000 people, operates in nine sectors with over 20 subsidiaries.