Ajinomoto has acquired a 33.33% stake in Promasidor Holdings, a major processed foods manufacturer in Africa, for $532m from Tana Africa Capital and the company’s founding partners.

Tana Africa Capital has sold its 25% stake for $399m.

Ajinomoto is a global manufacturer of seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. 

Promasidor Group is a privately held fast moving consumer goods company, founded in the Democratic Republic of Congo in 1979.

The Group currently conducts business in 36 countries throughout Africa. 

Mainly operating in the five countries of Nigeria, Algeria, Ghana, the Democratic Republic of the Congo and Angola, Promasidor produces and sells powdered milk, powdered beverages, flavor seasonings, cereals and other food products.

The population of Africa was approximately 1.2 billion as of 2015, and is projected to reach 1.7 billion in 2030, according to United Nations.

Expansion of the middle-income consumer segment due to economic growth is leading to diversification of food-related demand and a greater need for convenience, particularly among younger consumers. 

Ajinomoto said that given these trends, “the seasonings and processed foods market is expected to grow strongly in the future”.

Ajinomoto said that the investment in Promasidor will enable the firm “to strengthen its business foundation across Africa.”

Ajinomoto will participate actively in Promasidor’s management and business operations through representation on its board of directors and in other ways, and Ajinomoto Co. and Promasidor will consider integrating their Nigerian subsidiaries. 

Tana Africa Capital is an active, value orientated investor that focuses primarily on consumer-driven sectors. 

Tana invests between $20m and $75m to acquire significant minority or control equity positions in established businesses.

Tana’s current investments include minority interests in SANA Education, Société Alimentaire de la Nomba and Regina for Pasta and Food Industries.