Ajinomoto Co., Inc. Acquired Majority Shares of an Agro-business Company in Spain
Date:10-16-2017
Ajinomoto Co., Inc. (“Ajinomoto Co.”), through its consolidated subsidiary S.A. Ajinomoto OmniChem N.V. (“AOC”) in Belgium, has signed a share purchase agreement of majority shares of Agro2Agri, S.L. (“A2A”) that has Agro-business subsidiaries in Spain with Dadelos S.L., its sole shareholder of A2A. 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 (sum of 2 companies) to EUR 60 million, by 1.5 times (vs. expected sales for 2017) by 2020.
A2A, specialized in the production and marketing of biostimulant2products 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 fertiliser companies and in B2C business concentrating on marketing and sales and has grown with double digits annually over the last five years with its strength of product development capability.
The global biostimulants market was valued at USD 1,607 million in 2014 and is projected to reach USD 3,490 million by 2020 at a CAGR of 14.1% from 2015 onwards due to heightening awareness of the necessity of reducing the environmental burden in agriculture. Especially the European market, the largest and covering about 40% of the total market, is projected to reach USD 1,411 million by 2020. (Source: MarketsandMarkets 2016).
AOC, established in 1778, mainly manufactures and sells pharmaceutical intermediates and APIs globally. Its Agro-business produces and sells surfactants3 in more than 60 countries worldwide as ingredients of agrochemical and fertiliser (B2B business) under the brand name Tensiofix®, with strength in formulation expertise to develop and propose specific formulations with surfactants to be applied in crop protection in line with customer needs.
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 EUR 60 million, by 1.5 times (vs. expected sales for 2017) by 2020.
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.”
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