US-based Stratas Foods has agreed to buy an AAK facility based in New Jersey supplying the foodservice sector.
Stratas Foods, a venture between Associated British Foods and ADM, said the acquisition of the site in Hillside fits its plans to grow its business in oils and dressings and sauces.
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AAK said it was instead investing further in Europe, with a focus on the UK and the Nordic region.
In a statement, Stratas Foods said the facility “significantly enhances” its manufacturing capabilities in the north-east of the US.
The Hillside site is a “key manufacturing platform” to launch products, including butter-flavoured oils, and to extend the Admiration brand, it added.
Stratas Foods CEO Erik Heggen said: “The acquisition of AAK Foodservice, Hillside underscores our commitment to expanding our footprint and capabilities in the Northeast. Along with our Englewood, NJ site, AAK Foodservice, Hillside fortifies a robust platform that empowers us to grow with our customers today and well into the future.
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By GlobalData“At Stratas, our team is fiercely focused on redefining what is possible to help our customers thrive. Together, our Hillside and Englewood locations are poised to deliver unparalleled value to our customers and stakeholders alike.”
AAK said the deal is expected to generate “a one-time positive cash flow impact of approximately SgKr600m at closing”.
Johan Westman, AAK’s president and CEO, said: “In line with our strategy, we are optimising our foodservice business by focusing on Europe, where we see critical mass and growth potential. As part of this shift, we will divest the Hillside plant while strengthening our European presence by investing in a new facility in Sweden to replace the existing site in Dalby. Additionally, we are enhancing and modernising our Hastings foodservice site in the UK. These strategic investments will improve operational efficiency and position AAK for future growth in the foodservice sector.”
