Croda International has sold its £17m-turnover Croda Food Services business to AAK UK, the UK division of global speciality oils company AAK AB.
The business, based in Oldham, supplies release agents, divider oils and delivery systems to the baking industry.
President of AAK UK, Ian McIntosh, said: "We are delighted to have concluded this deal, which fits so well with our strategy of offering specialty oil-based products and services. As a major player in the UK bakery fats sector, enhancing our product range in this way will offer our customers a more complete package to meet their needs."
The new business will trade as AAK Bakery Services from its Oldham base and AAK has plans to expand its focus to include export markets.
AKK also operates one of the UK’s biggest vegetable oil refineries in Hull and also includes AAK Foods based in Runcorn, Cheshire, which offers sauces, dressings and marinades to retail and foodservice sectors.