DEERFIELD, Ill., US – As part of its ongoing efforts to further focus its portfolio on snacking products, Mondelez International, Inc. has announced that it has reached an agreement to sell its 50 percent interest in Ajinomoto General Foods, Inc. (AGF) to its joint venture partner, Ajinomoto Co., Inc.
AGF manufactures and sells instant, ground and liquid coffee products as well as other beverages in Japan under brands mainly licensed by Mondelez International, including Blendy and Maxim.
In May 2014, Mondelez International announced its intention to combine its coffee business with D.E Master Blenders 1753 to create the world’s leading pure-play coffee company, to be named Jacobs Douwe Egberts (JDE).
As part of this, Mondelez International’s Japan joint-venture partner, Ajinomoto, was invited to join JDE. During these discussions, Ajinomoto expressed a strong interest in acquiring Mondelez International’s shares in AGF.
Upon closing of the stock purchase agreement, Mondelez International will receive pre-tax cash proceeds of ¥27 billion.
The AGF transaction is scheduled to close by the end of April 2015, subject to limited closing conditions. The stock purchase agreement with Ajinomoto will not have any impact on the proposed JDE transaction, which is expected to close later this year.
In 2013, AGF generated more than ¥100 billion1 in net revenue. It has 700 full-time employees and two factories in Gunma and Suzuka, Japan.
