TURKEY: Ferrero seals deal for hazelnut firm Oltan
Ferrero has acquired Turkish hazelnut producer Oltan Group
Ferrero has confirmed the acquisition of Turkish hazelnut processor Oltan Group for an undisclosed sum.
The Italy-based confectioner announced the move yesterday (16 July), saying the deal would "guarantee and further improve the quality of a leading raw material" in many of its products.
Oltan Group has five production facilities exporting hazelnut products - including roasted, bleached and chopped hazelnuts as well as hazelnut kernels, meal and paste - to overseas food manufacturers. The firm has an annual turnover of more than US$500m.
Turkish press reports began circulating earlier this month regarding the potential acquisition. A source close to the situation confirmed to just-food there were discussions but that nothing had been secured at that point.
The Ferrero Group, one of the market leaders of the confectionery industry, continues to strengthen its presence in the hazelnut market in order to guarantee and further improve the quality of a leading raw material that gives a unique taste to many of its popular products, such as Nutella® hazelnut spread , Ferrero Rocher® chocolates and Kinder Bueno® chocolate.
In line with this, the Ferrero Group has acquired 100% of the family-owned Oltan Group. Oltan Group is the worldwide leading operator in the procurement, processing and marketing of hazelnuts, with an annual turnover above $500 million.
Based in Trabzon, Turkey, the Oltan Group is active throughout the main hazelnut growing regions with five production facilities exporting to the European Union and other major markets around the world.
The agreement is still subject to the final approval by the competent Regulatory Authorities.
This acquisition will foster Ferrero's Corporate Social Responsibility engagement on sustainable agricultural practices, already active in Turkey through its dedicated program named Ferrero Farming Values (FFV). This is based on specific principles and focused mainly on enhancing farming skills of all farmers and improving their possibility of revenue increase.
The mutual interests between Ferrero's long term and quality-oriented investment approach and Oltan's historical, valuable, and consolidated presence in the Turkish hazelnut market will represent a significant opportunity for a sustainable and leading growth of the Turkish hazelnut sector in the future.
Original source: Ferrero
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