Sweden-based vegetable oils and fats producer AAK has announced the completion of the acquisition of California Oils (CalOils).
In July, AAK announced that it was acquiring CalOils, which is based in Richmond, California, from Japan’s Mitsubishi Corporation.
The acquisition cost is estimated to be approximately SEK 15m ($1.7m).
CalOils supplies vegetable oils across the US west coast. The transaction is said to have been completed on 31 August and now CalOuls is representing AAK’s fourth production site in the US.
According to AAK, the acquired vegetable oil business has been consolidated into its food ingredients and chocolate and confectionery fats business division.
Last year, CalOils had recorded revenue of around SEK 1,350m ($157.6m) and produced a volume of approximately 110,000 MT.
It is said to have a workforce of 65 employees who are being integrated into the new parent company.
AAK said that the acquisition will start contributing to its operating profit from Q3 2017.
The company operates in three business segments - food ingredients, chocolate and confectionery fats, and technical products and feed. It has production facilities across Belgium, Denmark, Colombia, the US, Mexico, Sweden, the Netherlands, Uruguay and the UK.
In September 2015, AAK acquired 51% stake in Kamani Oil Industries, a speciality and semi-speciality oils and fats companies in India.
Kamani Oil had an annual revenue of SEK 1,000m ($116.7m) and a volume of 100,000t.
