Kraft Heinz to Snap up Assan Foods

Kraft Heinz (KHC) has announced that it will acquire Assan Foods from Turkish firm Kibar Holding for $100 million. Assan Foods, a sauces-focused entity with manufacturing facilities in Izmir and Balikesir, has been Kraft Heinz’s certified production partner since 2019.

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The acquisition of Assan Foods allows Kraft Heinz to expand its food services and retail business across Africa, the Middle East and Europe. The company anticipates closing the deal in the second half of this year, subject to customary closing conditions. (See Kraft Heinz stock analysis on TipRanks)

President of Kraft Heinz International Zone Rafael Oliveira said, “This is a great opportunity to accelerate our international growth strategy.”

Meanwhile, Jefferies analyst Robert Dickerson has maintained a Hold rating on KHC with a price target of $41, implying a downside potential of 5.57% from current levels. The analyst has maintained his full-year forecast on KHC despite the company’s impressive Q1 results.

Dickerson said, “Incremental H2 cost inflation expectations and promotional activity return will impact the company.”

Consensus among analysts is Hold based on 1 Buy, 9 Holds, and 1 Sell. The average analyst Kraft Heinz price target of $41.5 implies 4.42% downside potential from current levels.

KHC scores 5 out of 10 on TipRank’s Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.