AgroPages-Ajinomoto buys majority stake in Spanish agro-business-Agricultural news

Japanese food and chemical corporation Ajinomoto has acquired the majority shares of a Spanish agro-business, expanding its profile in Europe.

Through its consolidated subsidiary S.A. Ajinomoto OmniChem N.V. in Belgium, the company has signed a share purchase agreement of majority shares of Agro2Agri SL which has agro-business subsidiaries in Spain with Dadelos SL its sole shareholder of A2A.

Ajinomoto OmniChem (AOC) aims to grow its agro-business through entering into the rapidly growing new agriculture market on a full-scale especially in Europe and increase its related sales to €60 million (US$705 million) by 2020.

A2A specialized in the production and marketing of biostimulant products mainly based on amino acids in more than 50 countries worldwide, has several subsidiaries both in B2B business to produce and supply raw materials for agrochemical and fertilizer companies and concentrates on marketing and sales.

It has experienced double-digit growth annually over the last five years with its strength of product development capability.

Agro natural compound of ingredients such as amino acids and other ingredients through microbial fermentation and natural ingredients including natural extracts that are used to improve immunity inherent in plants and promote plant growth.

The global biostimulants market was valued at US$1,6 million in 2014 and is projected to reach US$3.49 million by 2020 at a CAGR of 14.1 percent from 2015 onwards due to heightening awareness about reducing the environmental burden in agriculture.

The European market accounts for about 40 percent of the total market and is projected to reach US$1.4 million by 2020.

Established in 1778, AOC mainly manufactures and sells pharmaceutical intermediates and APIs globally. Its agro-business produces and sells surfactants in more than 60 countries as ingredients of agrochemical and fertilizer under the brand name Tensiofix.

“By the majority share acquisition this time, Ajinomoto Co will expand its agro-business more rapidly by entering into the fast-growing area of biostimulants on a full-scale and taking advantage of the strengths of AOC and A2A such as joint development of new products and new customers, and proceed with the establishment of specialities in the agro-business in Europe as well as increase its related sales in Europe to €60 million, by by 2020,” says Ajinomoto.

The Ajinomoto Group aims to realize a “genuine global specialty company” through the “food and AminoScience business” by contributing to human, animal and plant nutrition under the corporate message of “Eat Well, Live Well.”