Seviroli Foods LLC, a leading manufacturer of frozen pasta and other food products and importer of specialty foods, has announced that it has acquired a portfolio of Italian food products from Ajinomoto Foods North America, Inc., a subsidiary of Japan’s Ajinomoto Group. The deal includes the related intellectual property and equipment of the business, as well as the brands Bernardi, Rotanelli’s and Mona’s.
The deal, which was completed for an undisclosed amount, will allow Seviroli Foods to expand its product offering, primarily in foodservice and retail end-markets, while also broadening its relationships with key customers and suppliers. The deal will also enhance Seviroli Foods’ position as a provider of high-quality frozen pasta products in the industry.
Who are Seviroli Foods and Ajinomoto Foods North America?
Seviroli Foods is a portfolio company of Mill Point Capital LLC, a private equity firm that focuses on investing in middle-market businesses in the industrial and business services sectors. Seviroli Foods was founded in 1960 by Joseph Seviroli, and is headquartered in Garden City, New York. The company manufactures frozen pasta and other food products, such as ravioli, tortellini, gnocchi, lasagna, and cannelloni, under its own brands, such as Seviroli, Vertullo, and D’Italia, as well as for private labels. The company also imports food products from 19 countries through its Vertullo arm, which supplies products to Seviroli Foods, as well as to third-party foodservice, retail, and e-commerce trade customers.
Ajinomoto Foods North America is a subsidiary of Ajinomoto Group, a global food and biotechnology corporation that produces seasonings, processed foods, beverages, amino acids, pharmaceuticals, and specialty chemicals. Ajinomoto Foods North America was established in 2000, and is headquartered in Ontario, California. The company produces frozen foods, such as appetizers, entrees, snacks, and desserts, under its own brands, such as Ajinomoto, Ling Ling, Tai Pei, and Jose Ole, as well as for private labels. The company also operates a food solutions business, which provides customized food products and services to foodservice and industrial customers.
What are the benefits and challenges of the deal?
The deal is expected to bring several benefits for both Seviroli Foods and Ajinomoto Foods North America, such as:
- For Seviroli Foods, the deal will add new products, brands, and capabilities to its portfolio, which will enable it to serve a wider range of customers and markets, and to drive greater category depth and growth. The deal will also strengthen Seviroli Foods’ market capabilities and competitive edge, as it will leverage the expertise and reputation of Ajinomoto Foods North America in the frozen pasta segment.
- For Ajinomoto Foods North America, the deal will allow it to focus on its core products, such as gyozas and potstickers, which are more aligned with its parent company’s global strategy and vision. The deal will also allow Ajinomoto Foods North America to optimize its production capabilities and resources, and to better serve its customers with its core products.
The deal also poses some challenges for both parties, such as:
- For Seviroli Foods, the deal will require it to integrate the acquired business with its existing operations, and to manage the potential operational, financial, and cultural risks involved. The deal will also require Seviroli Foods to maintain the quality and consistency of the acquired products and brands, and to retain the loyalty and trust of the existing customers and suppliers.
- For Ajinomoto Foods North America, the deal will entail a loss of revenue and market share from the divested business, and a possible reduction in its workforce and assets. The deal will also entail a transition period, during which Ajinomoto Foods North America will have to ensure a smooth handover of the business to Seviroli Foods, and to address any issues or concerns that may arise.