Mizkan, which aims to expand beyond its home market in Japan, also picks up two North American manufacturing facilities (a sauce processing and packaging facility in Owensboro, KY and a tomato processing facility in Stockton, CA) in the transaction. The move follows Mizkan’s recent acquisitions of Holland House and Border Foods.
Ragu is the top-selling pasta sauce in the US. The two brands bring in combined annual sales of $600 million, with room for growth, as the North American pasta sauce market is currently valued at approximately $2.3 billion.
Unilever plans to use the proceeds to fund its recent buyout of share rights held by family trusts tied to company co-founder William Hesketh Lever, as well as to fund bolt-on acquisitions. The consumer and foods giant is also looking to sell off SlimFast and has set an asking price of $1.7 billion.