AarhusKarlshamn signs deal to buy Belgian bakery fats specialist

AarhusKarlshamn (AAK) has entered into an agreement to take over the oils and fats business of CSM Benelux in Merksem.

CSM Benelux’s oils and fats business caters to bakery manufacturers in Belgium, Netherlands and France, and it has a workforce of 100. It provides fat solutions, margarines and pumpable shortenings.

In 2013, the company generated revenues of around SEK970m.

As part of the acquisition, AAK will gain control of CSM’s facility in Merksem, its sales force, application specialists and a bakery innovation centre.

The centre will allow customers to work with AAK’s customer innovation teams to develop new bakery products and solutions.

AAK Europe president Jens Wikstedt 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."

AAK president and CEO Arne Frank said, "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."

The Merksem site will be accretive to AAK’s operating profit during the second half of 2015.

Subject to regulatory approvals, the transaction is expected to close within three months.

Malmö, Sweden-headquartered AAK refines and sells vegetable oils for specialised products, primarily in Europe and the US.

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Image: CSM Benelux’s oils and fats business provides fat solutions, margarines and pumpable shortenings to bakery manufacturers. Photo courtesy of Paul at FreeDigitalPhotos.net.