MEMPHIS, TENN. — Stratas Foods, LLC has signed an agreement to acquire AAK Foodservice, Hillside, a New Jersey facility, in a move designed to increase Stratas’ presence in the value-added oils, dressings, sauces and mayonnaise categories. Through the acquisition Stratas will expand to nine US manufacturing facilities from eight.
“The acquisition of AAK Foodservice, Hillside underscores our commitment to expanding our footprint and capabilities in the Northeast,” said Erik Heggen, chief executive officer of Memphis-based Stratas. “Along with our Englewood, NJ, site, AAK Foodservice, Hillside fortifies a robust platform that empowers us to grow with our customers today and well into the future.”
Malmö, Sweden-based AAK expects the transaction to generate a one-time positive cash flow impact of about SEK600 million ($56.55 million) at closing. AAK plans to enhance its European foodservice structure and will invest in a new site to replace an existing facility in Dalby, Sweden.
The transaction is subject to customary closing conditions. Employees of AAK Foodservice, Hillside will join Stratas Foods, a supplier of fats, oils, mayonnaise, dressings and sauces to the foodservice, food ingredients and retail private label markets in North America.
