Mitsubishi grows food business
market with its purchase of the ingestibles business of Dublin,
Ohio based Ashland Distribution.
Hank Waters, president of Ashland Distribution, said that the ingestibles line - which includes food and beverage additives and pharmaceutical ingredients - represented less than four percent of the company's total sales of $2.8 billion last year, and had little overlap with its other businesses, which focus on the personal care and cosmetics industries.
In contrast, Mitsubishi has been steadily adding to its ingredients business and now has revenues in this division of around $500 million a year.
"We view this acquisition as a strategic opportunity to access more customers in North America and add value to our existing business," said Kenichiro Yagasaki, general manager of the Life Sciences Product Unit at Mitsubishi.
A spokesperson for Mitsubishi in New York said that the company intends to grow its share of the food segment globally and has a particular interest in the distribution network in the US.
Last year the multi-national group bought a small distribution company for around $20 million, and until this latest acquisiton had acquired a few other companies worth around $30 million in total.
