Swedish-Danish firm AAK completes acquisition of CalOils from Japan’s Mitsubishi

Swedish-Danish vegetable oils and fats producer AAK has completed the acquisition of California Oils, a US-based producer of speciality oils.

The acquisition of California Oils, also known as CalOils, was first announced on 15 July. The company has been purchased from Japan’s Mitsubishi Corporation.

CalOils now represents AAK’s fourth production site in the US and will be consolidated into business areas, namely food ingredients, and chocolate and confectionery fats.

Last year, CalOils generated revenues of approximately Skr1,350m ($157.6m) and a volume of approximately 110,000 million tons. The company has nearly 65 employees.

Integration of the two companies is expected to begin immediately, and the acquisition costs will be charged to the third quarter of this year. The acquisition cost is estimated to be approximately Skr15m ($1.7m).

At the time of signing the deal, AAK USA president Terrence Thomas said: “A strong presence on the US West Coast has been priority for AAK since several years.

“The West Coast encompasses 20% of the US population and this expansion has been identified as an important component of AAK’s long-term growth strategy.

“The acquisition of CalOils will transform AAK into a true national speciality and semi-speciality edible oils company, improving our ability to serve existing customers on a national scale while at the same time creating new customer opportunities.

“CalOils has important market positions up and down the West Coast. This acquisition establishes AAK as the leading supplier of speciality and semi-speciality oils to the bakery, dairy and chocolate and confectionery industries in California and across the west coast of the US and Canada.

“In the medium-term, it also supports our US foodservice platform, Oasis Foods, to develop into a national supplier.”

The acquisition is expected to start contributing to AAK’s operating profit from the third quarter of next year.