AAK has acquired a 75% stake in NPO Margaron – a Russia-based producer of margarine, spreads, and bakery and confectionery fats – for an undisclosed sum.
Headquartered in St Petersburg, Russia, NPO Margaron has operated as a toll manufacturer for AAK for over a decade, and registered revenues of SEK 280 million ($29.3 million) in its last financial year.
AAK says that the purchase will strengthen its position in the region, as it will allow the company to move closer to several major clients which have developed a strong presence in the Russian market.
The purchase also includes an option for AAK to acquire the remaining 25% stake in NPO Margaron, if certain long-term targets are met.
The transaction is subject to the approval of the Russian regulatory authorities, and AAK estimates that the transaction will be completed in the second quarter of 2020.
Johan Westman, president and CEO of AAK, said: “Russia and the CIS countries have a population of more than 200 million people and is a highly attractive market for AAK.
“It is also one of the world’s largest chocolate and confectionery markets with strong potential for our Special Nutrition, Bakery, and Dairy segments as well.
“By strengthening our local footprint, we will have an opportunity to expand our product portfolio and unique customer co-development approach to the Russian market.”
Jan Lenferink, president of AAK Europe, added: “AAK’s sales team in Russia has together with Margaron delivered strong regional growth over recent years.
“This acquisition will enhance our customer proximity, increase our business opportunities, and further grow our market share in the region.”
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