US agri-food firm Cargill will consolidate its position in raw materials - the building blocks for a range of common ingredients also supplied by the company - with the acquisition of Italian firm Pagnan.
Without disclosing the purchase price, Cargill said it aims to absorb Pagnan's grain and oilseed meals, import and trading business into a newly formed subsidiary called Pagnan Commerciale.
According to Cargill, that already has starch and sweetener operations in Italy, the deal will build on existing grain trading businesses in Italy, providing particular benefits to "our agri-food customers."
"Cargill's international presence…will increase the volumes of grains being handled in the ports of the north Adriatic, in particular Venice and Chioggia and in the river destinations of Rovigo, Mantova and Cremona," says Renato Pagnan, president of Pagnan, that will have a share in the new firm.
The largest private company in the US, Cargill continues to demonstrate clear ambitions in the European food sector.
Last month the firm signed off over €76 million in investments for polyol sweeteners; with the expansion of plants in the US and Europe, including the firm's Italian Castelmassa facility.
In the same month, Cargill announced it would break ground on its first refinery in Russia, the number one vegetable oil market for the Central and Eastern European region.
Sunflower, rapeseed and corn oil, as well as palm and coconut oil, will all pass through the new €46.1 million facility expected to be up and running by February next year.