AAK completes California Oils acquisition

by Jeff Gelski
Share This:
Search for similar articles by keyword: [Oils]

CalOils, AAK
The vegetable oils company has volume of about 110,000 tonnes.

KARLSHAMN, SWEDEN — AAK completed its acquisition of California Oils Corp., a vegetable oils company in Richmond, Calif., from Mitsubishi Corp., Tokyo, on Aug. 31. California Oils, also known as CalOils, last year had revenues of about SEK 1,350 million ($158 million) and volume of about 110,000 tonnes. The company employs 65 people.

AAK, Malmo, Sweden, now has four production sites in the United States with the other sites being in Edison and Port Newark, N.J.; and Louisville, Ky. The company will consolidate CalOils into business areas Food Ingredients and Chocolate & Confectionery Fats.

AAK first announced the deal on July 15. Acquisition-related costs will be charged to the third quarter of 2016. Acquisition cost is estimated to be about SEK 15 million. CalOils should start contributing to AAK’s operating profit from the third quarter of 2017. 
Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.