Ajinomoto Co., Inc. to Acquire Örgen, a Major Food Company in Turkey, for
Approx. JPY 7.4 Billion
Will Accelerate Expansion of Business in the Turkish Market
TOKYO, November 16, 2016 – Ajinomoto Co., Inc. (“Ajinomoto Co.”) 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 Turkish Lira (TRY)1 (approximately JPY 7.4 billion). Ajinomoto Co. signed a share purchase agreement on November 15, 2016 (local time) with Yıldız Holding A.Ş. (“Yıldız Holding”),2 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.

In 2013, Ajinomoto Co. acquired a 50% stake in KÜKRE GIDA VE İHTİYAÇ MADDELERİ NAKLİYAT VE ÖZEL EĞİTİM HİZMETLERİ TİCARET VE SANAYİ ANONİM ŞİRKETİ (“Kükre A.Ş.”), a food company that owns the traditional seasoning brand KEMAL KÜKRER. Ajinomoto Co. has since strengthened its business foundation in Turkey and expanded its food business into new fields.

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.3 In addition, by obtaining Örgen’s brand Bizim Mutfak, Ajinomoto Co. will strengthen its business portfolio in Turkey.

Örgen’s Main Products

Bouillon Powdered soups Menu-specific seasonings Powdered
dessert

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.

Ajinomoto Co. plans to acquire all of the shares of Örgen in early March 2017, and to maintain Örgen’s current management structure after the acquisition. Örgen will become a consolidated subsidiary of Ajinomoto Co. after the acquisition is completed, but this is not expected to have a material effect on consolidated results for fiscal 2016.

1. TRY 1 = JPY 33.67 (exchange rate as of October 31, 2016)
2. A major general food group in Turkey that owns Ülker, GODIVA and other leading brands.
3. Among Örgen’s current operating businesses, the coffee business is scheduled to be transferred (demerger) to a group company of Yıldız Holding, the parent company of Örgen before the share acquisition by Ajinomoto Co. The ketchup, mayonnaise and spice businesses will be terminated.

Reference

Overview of Örgen
(1) Company name: Örgen Gıda Sanayi ve Ticaret A.Ş.
(2) Location: Izmir, Republic of Turkey
(3) Establishment: 1987
(4) Representative: Mehmet Tütüncü, Chairman
(5) Net sales: Approximately TRY 102 million (approximately JPY 3.4 billion) (FY2015
results for the four businesses to be acquired)
(6) Number of employees: Approximately 400 (as of October 31, 2016)
(7) Business description: Manufacture and sales of bouillon, powdered soups, menu-specific
seasonings, powdered desserts, coffee, ketchup, mayonnaise and spices3
(8) Equity ownership: Yıldız Holding A.Ş.: 51%, Örgen family: 49%

Management after Share Acquisition
(1) Shareholder composition: Ajinomoto Co., Inc. 100%
(2) Acquisition date: Early March 2017 (scheduled)

Relationship between Örgen and Kükre A.Ş.

About Ajinomoto Co.
Ajinomoto Co. is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades, Ajinomoto Co. has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 27 countries and regions, Ajinomoto Co. had net sales of JPY 1,185.9 billion (USD 9.87 billion) in fiscal 2015. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.

For further information, please contact:
Ajinomoto Co., Inc. Public Communications Department; pr_info@ajinomoto.com
 
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