Kraft Heinz has struck a deal to buy Brazil-based condiments supplier Companhia Hemmer Indústria e Comércio.
The US ketchup, mayo and mustard major did not disclose the price it has agreed to pay for the business, known as Hemmer.
Rafael Oliveira, the president of Kraft Heinz’s international business, said: “Hemmer is a legendary company in Brazil, growing net sales significantly, and will bring a delicious and diverse portfolio of products to Kraft Heinz.”
Hemmer is based in the southern Brazilian city of Blumenau. The company, set up more than 100 years ago, markets a range of condiments and sauces. including mustard and ketchup.
The move for Hemmer is subject to local competition approval in Brazil. The deal comes three months after Kraft Heinz announced the acquisition of Assan Foods, a Turkey-based condiments supplier and one of the US giant’s co-manufacturers. The transaction was the first full acquisition since Miguel Patricio was hired as Kraft Heinz CEO in 2019.
The ketchup, soup and baked-beans manufacturer has made minor investments in fledgling firms.
However, the accent of Kraft Heinz’s M&A activity in recent years has focused on disposals as Patricio sought to re-shape the business and pay down debts.
Earlier this year, the company sold its Planters snacks business to US peer Hormel Foods.
Last September, Kraft Heinz sold a clutch of cheese assets to French dairy group Lactalis.