Ajinomoto Co. has completed procedures for the acquisition of all shares of Labeyrie Traiteur Surgelés S.A.S. (“LTS”) through its consolidated subsidiary Ajinomoto Foods Europe S.A.S. (”AFE”) in accordance with the details announced on July 20, 2017. This acquisition will further strengthen Ajinomoto Co.’s consumer food business in Europe and accelerate its growth.
The acquisition price is EUR 27 million (approximately JPY 3.6 billion), which is based on an enterprise value of EUR 21 million (approximately JPY 2.8 billion) for LTS and takes into account factors including the receivables held for LTS by LABEYRIE FINE FOODS S.A.S., its parent company.
Along with the acquisition of all shares, the company name of LABEYRIE TRAITEUR SURGELÉS S.A.S. has been changed to LTS S.A.S. as of November 2. The impact of the acquisition on Ajinomoto Co.’s business results for fiscal 2017 will be immaterial.
Through this acquisition, Ajinomoto Co. will expand and enhance its business platform for frozen foods in France by combining LTS’s production base and market reach in the home-use sales channel with the Ajinomoto Group’s specialty (product development and production technology capabilities). Going forward, Ajinomoto Co. will further strengthen its consumer foods business in Europe and accelerate growth.
“The frozen food market in Europe is huge, at approximately EUR 4 billion (source: Euromonitor 2016) in 2015, and is growing steadily. The Asian market segment has continued to grow by double digits in recent years, reaching approximately EUR 500 million (approximately JPY 64 billion; Ajinomoto Co. estimate for 2016). Sales of AFE’s consumer foods business in fiscal 2016 totaled approximately EUR 45 million (approximately JPY 5.8 billion), mainly comprising sales of frozen foods for restaurant use,” according to a press release.
Currently conducting business centered on France, LTS sells LABEYRIE products, which are the No. 1 brand in France for high-quality desserts and apéritifs (bite-sized puff pastry), Blini brand products, pies, risotto and other products to major distributors. With this acquisition, Ajinomoto Co. intends to expand and enhance its business platform for frozen foods in France by capitalizing on its strength in gyoza products to expand sales of Ajinomoto Group products through LTS’s home-use sales channel, and by selling LTS products through Ajinomoto Co.’s existing restaurant-use sales channel. Ajinomoto Co. will also roll out LTS’s high-quality products to other countries.
