OREANDA-NEWS. Ajinomoto Co., Inc. signed an agreement to acquire a 50% stake in KUKRE GIDA VE IHTIYAC MADDELERI NAKLIYAT VE OZEL EGITIM HIZMETLERI TICARET VE SANAYI ANONIM SIRKETI (Kukre A.S.), a premium brand food company in Turkey, for approximately 60 million Turkish Lira (TRY) (approximately JPY 2.9 billion).

By adding its wide-ranging strengths in product development and production technology to the powerful brand and distribution capabilities of Kukre A.S., Ajinomoto Co. aims to enhance its existing business in Turkey and expand its business into new fields of food products to strengthen its future rollout into the markets of the Middle East and Central Asia.

Turkey has a population of approximately 75 million with per capita GDP of USD 10,504. The country's seasonings and processed food market was TRY 65.0 billion (approximately JPY 3.2 trillion) in fiscal 2012 (Ajinomoto Co. estimate) with a firm annual growth rate of 5.4%, and demand is expected to grow briskly in the future. Ajinomoto Co. has started a restaurant-use seasonings business in Turkey through Ajinomoto Istanbul Food Sales Ltd. (established in 2011).

With a history of nearly 100 years, Kukre A.S. is a food products company that produces and sells seasonings (vinegars, fruit sauces), pickles and other products, and its main KEMAL KUKRER product lineup is recognized as a premium brand throughout Turkey. Moreover, the company has a distribution network covering more than 30,000 retailers in Turkey and powerful capabilities for direct marketing to the restaurant channel, nationwide mass merchandiser chains and influential retail stores. Kukre A.S. will achieve further growth by enhancing sales of existing products such as AJI-NO-MOTO(r) and expanding into new fields of original food products using the wide-ranging strengths in product development and production technology of Ajinomoto Co.

With this acquisition, Ajinomoto Co. aims for a market of JPY 5.0 billion (approximately 2.5 times the current scale) by 2018. Moreover, starting with the expansion of the business of Kukre A.S., in the future Ajinomoto Co. intends a further rollout into the Middle East and Central Asia as new markets to follow ASEAN and South America.

Ajinomoto Co. plans to make Kukre A.S. a non-equity-method affiliate in consideration of the impact of its business results on the financial statements of Ajinomoto Co.