The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
AAK, a manufacturer of speciality oils, condiments and other ingredients, has agreed to sell its foodservice facility in New Jersey, US, to Stratas Foods for an undisclosed sum.
Stratas Foods is a supplier of fats, oils, mayonnaise, dressings and sauces to the foodservice, food ingredients and private label retail markets in North America. It was formed in October 2008 as a joint venture between Associated British Foods and Archer Daniels Midland.
AAK has signed a binding agreement with Stratas, with the transaction expected to complete before the end of the year, subject to customary closing conditions.
The company said its deal with Stratas aligns with its portfolio-based strategy to further optimise its foodservice operations. Following the divestment of the site in Hillside, New Jersey, the group now operates three foodservice facilities – two in the UK, and one in Sweden – collectively accounting for around 5% of its total production volume.
It now plans to invest in enhancing its European foodservice structure, with a focus on strengthening its presence in the UK and Nordic regions. AAK revealed that alongside the deal, it is looking to invest in a new site to resist its existing facility in Dalby, Sweden, as well as modernising its Hastings foodservice site in the UK. The total capital investment for this expansion is approximately SEK 400 million (approx. $37.6m), spread over 2025-2026.
In a statement, Stratas Foods said its acquisition of AAK Foodservice Hillside aligns with its long-term growth objectives, particularly within the value-added oils, dressings, sauces and mayonnaise categories.
It will enhance Stratas’ manufacturing capabilities in the Northeast, complementing its existing site in Englewood, New Jersey, and helping the company to broaden its product offerings as well as expand its footprint in key markets. The site will provide a manufacturing platform to introduce new speciality products such as butter-flavoured oils and expand its branded Admiration business.
Erik Heggen, CEO of Stratas Foods, commented: “The acquisition of AAK Hillside underscores our commitment to expanding our footprint and capabilities in the Northeast. Along with our Englewood, NJ site, AAK Hillside fortifies a robust platform that empowers us to grow with our customers today and well into the future.”
The acquisition brings Stratas’ total number of manufacturing sites across the US to nine, supporting growth and innovation. Upon completion of the transaction, AAK Hillside’s emplyees will become part of Stratas Foods’ team. Stratas said it confirmed it will be working with the Hillside team in the coming months to ensure a seamless transition.
Top image: © AAK
#AAK #StratasFoods #US #Sweden