SWEDEN – Global food and ingredients supplier, Tate & Lyle has announced that it has sold its oat ingredients business, based in Kimstad, Sweden, to Swedish agricultural cooperative Lantmännen.
Lantmännen has acquired Tate & Lyle’s oat mill with a capacity of 55,000 tons and an oat ingredients manufacturing facility, according to the terms of the transaction.
The facility which produces oat protein, beta glucan and oat flour has 35 employees and according to Lantmännen, the additional oats capacity will enable it to meet growing demand from customers in the Nordic food industry.
Completion of the transaction will take place on 29 March 2019.
“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, Food & Beverage Solutions, Tate & Lyle.
“We wish Lantmännen and its employees every success for the future.”
Lantmännen has three oatmeal mills in Sweden, Denmark and Norway, and markets food and ingredients based on oats to the food industry.
The company is exploring research and innovation to develop new oat products to leverage on the rising global of oat which is connected to several health benefits.
To Lantmännen, the acquisition is a key milestone in developing its oat business, and forms part of its growth strategy.
It markets food and ingredients based on oats to the food industry and is a driving force in research and innovation to develop future oat products.
“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, CEO and Group 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.”