KARLSHAMN, SWEDEN — AAK has acquired a 75% interest in NPO Margaron LLC, a St. Petersburg, Russia-based producer of margarines, spreads, and bakery and confectionery fats. Financial terms of the transaction were not disclosed.

NPO Margaron has been a toll manufacturer (provider of raw materials or semi-finished goods to a third-party service provider) to AAK for more than a decade. The company had revenues of approximately $29.3 million in 2019.

“Russia and the CIS countries have a population of more than 200 million people and is a highly attractive market for AAK,” said Johan Westman, president and chief executive officer of 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.”

AAK said the transaction also will allow it to move closer to many of its global strategic accounts that already have established themselves in Russia.

“AAK’s sales team in Russia has together with Margaron delivered strong regional growth over recent years,” said Jan Lenferink, president of AAK Europe. “This acquisition will enhance our customer proximity, increase our business opportunities, and further grow our market share in the region.”