June 3 2019, David R Brown
Nagase Group to acquire global food ingredients distributor, Prinova Group, LLC
Nagase Holdings America and Prinova Group, LLC ("Prinova") have entered into a definitive agreement under which Nagase & Co., Ltd. ("Nagase Group") will acquire Prinova, a leading distributor and manufacturer of premium nutrition ingredients for the global food and wellness industries. The transaction is expected to close within 60 days subject to regulatory approvals.
This acquisition marks a significant milestone in our continued effort to expand Nagase Group's global footprint in a high value-added businessKenji Asakura
President and CEO of Nagase Group
Through this transaction, Nagase Group continues to expand its global footprint in the food and nutritional ingredients industry, particularly in North America, and the Group plans to leverage the new expertise to broaden its product portfolio and market offerings. For Prinova the takeover by Nagase will help to consolidate and develop their position in Asia-Pacific markets expanding both their distribution and premix businesses.
“This acquisition marks a significant milestone in our continued effort to expand Nagase Group's global footprint in a high value-added business,” said Kenji Asakura, President and CEO of Nagase Group. “The addition of Prinova's expertise, unique positioning, and portfolio offering enables us to expand our food and nutrition ingredients value chain in North America, Europe and also in Asia.”
“Prinova is among the world's largest distributors and providers of functional ingredients and integrated nutritional solutions to food, beverage and wellness brands but we have always had a broader vision – to make a larger global impact by helping our customers grow their brands and improve their customers' quality of life,” said Don Thorp, President of Prinova USA.
Prinova revenue was around USD 800 million in 2018 and some 70% of the company’s business is US-based, with 30% international. This share has diversified throughout the years, including through the 2017 acquisition of Lycored’s premix business. Prinova’s current leadership team will remain in place and, within Nagase’s infrastructure, will continue to oversee the strategic growth and overall quality of the Prinova brand
Prinova operates 6 plants and holds strategic stocks in 15 distribution centers around the world to ensure continuity of supply and is the leading global supplier of vitamin C, B and food grade amino acids. The company’s main corporate office is in Carol Stream (Illinois) with the European head office in the UK and a regional office in Canada. Additional regional offices are located throughout the US as well as global sales associates in Mexico, Spain, Germany, Belgium, France, Australia, Turkey and China.
Nagase Group is a leading chemical trading firm in Japan founded in 1832 with annual revenue of approximately USD 7.5 billion. Nagase Group has continued to expand its business by enhancing value added functions/services such as manufacturing, processing and R&D capabilities. Today, Nagase Group owns more than 100 companies around the globe, manufacturing and distributing various products such as resins, functional polymers, plastic products, electronic materials, functional food and pharmaceutical ingredients and intermediates.
Source(s): Nagase Press Release