AAK acquires Colombian vegetable oils firm

Swedish-Danish vegetable oils and fats producer AAK has acquired Colombia’s FANAGRA, which specialises in vegetable oils and fats for the bakery segment.

AAK Northern Latin America division president Octavio Díaz de León said that the acquisition will reinforce AAK’s speciality oils and fats strategy, and offer a strong foothold in Colombia.

"FANAGRA shows a significant potential to grow and emerge as an important player in the Colombian industrial market in which AAK will launch its innovative co-developed products that address global and local trends," he added.

The Bogotá-headquartered bakery fats firm reported SEK270m revenue last year, with an annual volume of 30,000t. It has a staff of 155 people and a plant in Villavicencio.

FANAGRA’s direct customer relationships and wide network of independent distributors have allowed it to have high local market penetration, said AAK.

AAK president and CEO Arne Frank said that the acquisition is an integral part of the company’s AAKtion programme.

"It strengthens our presence in another fast-growing economy in the strategically important bakery market," added Frank.

"It will also serve as a platform for increased sales of speciality and semi-speciality products within Dairy and Chocolate & Confectionery Fats in Colombia and northern Latin America."

AAK expects the deal to have a limited impact on its 2014 operating profit, and a slightly dilutive impact on EBIT per kilo for Food Ingredients.