Vegetable oils and fats producer AAK has expanded its ingredient portfolio with the acquisition of an 80% stake in Soya International (Europe).
Soya International operates out of Manchester, UK, and is engaged in sourcing, processing and distribution of non-GMO semi-speciality and speciality lecithins.
Lecithin is a natural emulsifier and by-product that is created during the processing of vegetable oils.
AAK president and CEO Johan Westman said: “Lecithin is a key ingredient for many customers within our core segments, especially Chocolate & Confectionery Fats and Bakery, but also Dairy, Special Nutrition, and Personal Care.
“By expanding our portfolio with this value-adding ingredient, we will further enhance our co-development capabilities and be able to create even better solutions in close collaboration with our customers globally.”
Established in 1996 by Sonny and Sonu Arora, Soya International has a third-party processing facility in the Netherlands and has established its relationships with customers and distributors in 40 markets across the globe.
The vegetable oils and fats producer further added that Sonny Arora will continue to be associated with the business, which will trade under the name of AAK Soya International.
Arora will lead the business as the managing director.
Additionally, AAK has the provision to acquire the remaining 20% stake in Soya International over the next two to five years under the put/call option.
The companies involved in the deal have not disclosed financial details of the transaction.
In March, AAK said that it will invest about SEK300m ($31.9m) to increase the capacity at its production facility located in Zhangjiagang, China.
