Bunge Ltd. has agreed to acquire Ana Gıda İhtiyaç Maddeleri ve Sanayi Ticaret A.Ş. (Ana Gıda), Turkey’s leading olive oil producer and producer of corn, and sunflower oils for an undisclosed amount.
Under the terms of the deal, Bunge will acquire a 55.25 percent stake in Ana Gida from Anadolu Group and the remaining 44.75 percent from SEEF Foods S.A.R.L. The financial terms of the deal were not disclosed. However, Yazicilar Holding, parent company of Anadolu, said in a statement that Ana Gida was valued at 172.5 million lira (US$49 million) and that financial consideration will be determined after year-end cash, debt, and working capital corrections are made.
Founded in 2011, Ana Gida owns Komili, the most established brand of olive oil in Turkey with a retail market share in the country exceeding 30 percent. Other leading oil brands owned by the company include Kırlangıç and Madra.
“The acquisition of Ana Gıda will enable Bunge to diversify into the higher value olive oil category with a market leadership position,” said Paul Ayton, managing director of Bunge Turkey. “We look forward to combining the knowledge and expertise of both companies across the full value chain to deliver superior products and customer service.”
For Bunge, which has been operating in Turkey since 2000 as a processor and distributor of both domestically produced and imported canola, soybean, and sunflower oilseeds, the acquisition of Ana Gida’s distribution network will enable the company to expand its presence in the country while also strengthening its edible oil portfolio.
“This acquisition is fully aligned with our strategy to strengthen our portfolio with increasing focus on added value products,” said Tommy Jensen, chief executive officer of Bunge EMEA. “It will further reinforce Bunge’s existing business in one of the largest and fastest growing edible oil markets in EMEA.”
Olive Us Love Olive Oil
Over the past 25 years global consumption of olive oil has increased by 73 percent, according to a report issued by the Italian farmer’s group Coldiretti, and has increased 1.8 fold in volume between 1990 and 2016 according to Olive Oil Market.
What is becoming a common theme behind acquisitions in the food and beverage sectors, consumer shifts toward more health-conscious food choices are drumming up more investor ‘noise’ around products and companies that produce and sell products that are perceived as ‘better for you.’
However, Extra Virgin olive oil really is better for you. Low in saturated fat and high in omega-3 fatty acids, antioxidants, and polyphenols, the Food and Drug Administration has approved real Extra Virgin olive oil to bear specific health claims on its label – an approval that is not given lightly.
Global olive oil consumption reached a record 3,295,911 tons last year with the top consuming country being Italy at 640,443 tons followed by Spain at 540,133 tons, and the U.S. at 339,512 tons reports the Olive Oil Times.
Additionally, countries that have not been traditionally high users of olive oil are also beginning to adopt its usage in light of its health benefits – Japan saw consumption of 66,139 tons last year, reflecting a 1,400 percent increase over the past 25 years, and Brazil saw consumption of 73,304 tons, representing a 25-year increase of nearly 400 percent.
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Lynda Kiernan