In a continuation of the trend of Japanese companies diversifying through the acquisition of Western assets, the Mizhan Group has acquired the Ragu and Bertolli pasta sauce brands from Unilever in an all-cash deal for $2.15 billion. The deal values the sauce business at 3.6 times its annual sales but will boost the Japanese company’s presence in U.S. supermarkets as domestic growth in Japan slows on declining birth rates. Mizhan isn’t the only Asian company to diversify through such acquisitions. Suntory Holdings closed a $16 billion takeover of U.S.-based Beam Inc. last month, Suntory Beverage and Food agreed to buy UK drinks Lucozade and Ribena last year, and China Bright Food Group just recently announced its purchase of a majority stake in Israel’s largest food company, Tnuva. The pasta sauce business will give Mizhan an additional annual turnover of $600 million. The deal is expected to close in June.
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