Japan Tobacco and instant noodle maker, Nissin Food Products Co Ltd, announced that they have teamed up to acquire frozen food company Katokichi Co Ltd.

Under the proposed deal, Japan Tobacco would buy all of Katokichi shares, which are expected to be valued at approximately JPY 100 billion (US$ 911 million), through a tender offer and then sell a 49 per cent stake to Nissin after Katokichi has been delisted, the newspaper said.
Thereafter, the respective frozen foods divisions of Japan Tobacco and Nissin will be merged into Katokichi, which will then become the leading frozen food manufacturer in Japan with combined annual sales of approximately JPY 260 billion.
The three companies’ frozen foods operations are highly complementary and their integration will allow the companies to establish an ideal value-chain, from research and development to sales operations, which will increase the value of the combined business, said Japan Tobacco in a statement. (ci)