ABF acquires Mazola oil
Foods buys Unilever oil brands.
British food, ingredients and retail company Associated British Foods on Tuesday announced the acquisition of Unilever's branded corn oil and corn products business in the US, Canada and Puerto Rico, for an all cash consideration of €404 million.
The acquisition will be carried out through the ABF subsidiary, ACH Food companies. In a statement this week ABF said that the acquisition will position ACH as a leader in the branded retail sector.
As a result of the transaction ACH will acquire a manufacturing facility in Argo, Illinois, manufacturing assets in Puerto Rico and New Jersey, goodwill, and leading brands from Unilever which include: Mazola (salad and cooking oils), Argo (cornflour), Kingsford's (cornflour), Purlite (cooking oil), Karo (corn syrup), Golden Griddle (table syrup), Henri's (salad dressing) and a number of Canadian brands. The acquired brands achieved sales in 2001 of US$310 million (£214 million). The acquisition includes net tangible assets valued at 31 December 2001 at US$ 46 million (£32 million).
Commenting on the purchase Peter Jackson, Chief Executive of Associated British Foods, said this week: "This acquisition is in line with our ongoing policy of investing in areas where we have strength and expertise. We are confident that we will develop Mazola and associated brands for the benefit of our shareholders."
ABF added that ACH is already a leader in the branded foodservice oil sector following its acquisition of the Whirl and Frymax brands from Procter & Gamble last year and a leader in own label vegetable oils in the US.
