INCJ to invest $45m in UK freeze-dried food company

The transaction will be made alongside Tokyo-based instant food company Nagatanien, which is aiming to acquire $130 million worth of shares in Chaucer's parent company Broomco, according to a statement. INCJ will hold 40% of Broomco while Nagatanien will own the remaining 60%.

The investment envisions using Chaucer's global distribution network to establish new markets for Nagatanien products, which include noodles and ochazuke, a dish made from rice and green tea. The plan aims to leverage positive trends in overseas appetite for Japanese foods and offer marketing diversification to Nagatanien at a time of sluggish growth in domestic consumer spending.

The deal will also offer an entry into Japanese markets for Chaucer, which specializes in freeze-dried fruits, vegetables and dairy products as well as bread. The company operates production plants in the US, Europe and China, and will retain its current management team. Broomco recorded a 17% increase in revenue during the 2015 financial year to $139.3 million.

INCJ will provide support by encouraging Japanese companies to create operational synergies through the use of Chaucer's knowhow in dry vacuum long-preservation methods. The state-backed investor has previously invested in food processing technology with participation in a $4.4 million round for Japanese start-up NanoMist Technologies.

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• Topics
• North Asia
• Europe
• Consumer
• Buyouts
• Japan
• United Kingdom
• Innovation Network Corp. of Japan (INCJ)