STOCKHOLM, SWEDEN — Lantmännen has reached an agreement to acquire the Kimstad, Sweden-based oat ingredients business of Tate & Lyle P.L.C. Financial terms of the transaction were not disclosed.

The transaction includes an oat mill that has capacity of 55,000 tons and an oat ingredients manufacturing facility that produces oat protein, beta glucan and oat flour. Lantmännen said the manufacturing processes at the Kimstad facility are similar to production at its Lantmännen Reppe location. Once the transaction is finalized the Kimstad facility will become part of the energy sector at Lantmännen.

“Oats are a strategic investment area for Lantmännen, and the further development of our oats business is a key part of our ‘Field to Fork 2030’ strategy,” said Per Olof Nyman, chief executive officer and president of Lantmännen. “We are already strongly positioned in oats, and this acquisition gives Lantmännen access to a modern mill that complements our existing production capacity within oats and creates a unique opportunity to develop and manufacture ingredients based on oats as the raw material.”

Lantmännen is a key player in the oats industry in the Nordic region. The company has three oatmeal mills in Sweden, Denmark and Norway. The company said it is taking a “long-term approach” to investments in processing, research and innovation within oats. The company describes itself as a “driving force in research and innovation” to develop future oat products.

“Lantmännen’s energy sector already has specialist expertise within the processing of wheat, and oat products will be an excellent complement to our current business,” said Magnus Kagevik, head of the energy sector at Lantmännen. “The acquisition enables Lantmännen to increase the production capacity of heat-treated oats significantly and gives us an opportunity to create added value within oat processing. It also creates synergies both within the energy sector and our other businesses at Lantmännen.”

Tate & Lyle acquired the Kimstad-based oat manufacturing facility as part of its acquisition of Biovelop in May 2013. In 2016, Tate & Lyle expanded capacity at the facility.

“We are pleased to reach this agreement with Lantmännen, which represents a good outcome for our oat ingredient employees and customers and enables us to focus our business on serving our customers in our main food and beverage categories,” said Joan Braca, president of food and beverage solutions at Tate & Lyle. “We wish Lantmännen and its employees every success for the future.”