Acquisition · Food
Kagome takes control of California tomato processor Ingomar in its largest-ever investment
- Buyer
- Kagome (Nagoya)
- Target
- Ingomar Packing Company, Los Banos, California
- Value
- $243M (for an additional 50%)
- Status
- Completed in January 2024.
- Date
- 2024-01-26
Kagome bought an additional 50% of Ingomar Packing, a major California tomato processor, for about $243 million, lifting its stake from 20% to 70% and making Ingomar a consolidated subsidiary. Kagome described the roughly ¥36 billion outlay as the largest investment in its history.
Why it matters
California is the world's leading source of processed tomatoes, and controlling Ingomar secures Kagome's supply of tomato paste for its global food-service and ingredient business at a time of weather and cost pressure.
About Ingomar
Ingomar was founded in 1983 in Los Banos, California, and makes tomato paste and diced tomatoes at two plants, opened in 1983 and 2000. In 2022 it processed about 1.55 million tons of fresh tomatoes, ranking second in the US and fourth in the world. Its sales grew from about $206 million to $311 million over the three years to June 2023.
Who owned it
Before the deal, six farming families owned 80% and Kagome's US arm owned 20%, a stake it bought in September 2016. Chief executive Greg Pruett leads the company, and Ingomar had been a major Kagome supplier in the US for years.
Kagome's plan
Kagome's international business was growing fast, with sales forecast at ¥86 billion for 2023, up 27%. It said the deal would strengthen its US tomato value chain and its farming know-how, as drought, heat waves and the war in Ukraine made tomato supplies unstable.
Sources
Kakehashi M&A News home
