AAK has acquired an oils and fats business of CSM that caters for the French, Belgian and Dutch markets for an undisclosed sum.
The business, based in Merksem, Belgium, employs 100 people, and had revenues of SEK970m (£89m) in 2013. The business provides a variety of bakery fat solutions, margarines and pumpable shortenings.
The acquisition includes the factory in Merksem, an experienced sales force, application specialists offering customised solutions, and a bakery innovation centre
Jens Wikstedt, president Europe, AAK, said: “The acquisition will strengthen our ability to supply bakery solutions in western continental Europe and create mutual cross-selling opportunities for bakery and CCF products to existing customer bases.”
“Pursuing our global growth strategy, this acquisition is an integral part of our company program AAKtion and adds important capabilities in sales and customer innovation. Merksem will serve as a platform for increased sales within bakery and CCF. Further, the well-equipped factory will complement our existing European manufacturing footprint nicely,” added Arne Frank, president and chief executive, AAK Group.
Merksem will start contributing to AAK’s operating profit during the second half of 2015.
The acquisition is subject to approval by the competition authorities and following works council procedures. It is expected to be completed within approximately three months.