To expand its ingredient portfolio with a product range critical to many of its customers, AAK has acquired 80 percent of Soya International (Europe) Ltd. The UK-based company focusses on the sourcing, processing and distribution of non-GMO (genetically-modified organism) semi-speciality and speciality lecithins.
Lecithin is a natural emulsifier and a by-product from the processing of vegetable oils. “Lecithin is a key ingredient for many customers within our core segments, especially chocolate and confectionery fats and bakery, but also dairy, special nutrition, and personal care,” stated Johan Westman, president and chief executive officer, AAK.
“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,” he added.
Soya International was founded in 1996 by brothers Sonny and Sonu Arora and operates out of Manchester. It has a third-party processing facility in the Netherlands and holds well-established relationships with customers and distributors in 40 markets globally.
The company had last year revenues of approximately SEK 150 million. Sonny will remain managing director of the business, which will trade under the name of AAK Soya International Ltd.
There is a put/call option, under which AAK could acquire the remaining 20 percent of the company within the next two to five years.
The acquisition will be consolidated as of today, and has no significant impact on AAK’s earnings. Acquisition-related costs will be charged to the third quarter of 2019.
