The acquisition of Unilever's Mazola and associated brands in North America by UK food company Associated British Foods (ABF) reached completion on Tuesday, following clearance from the necessary regulatory approvals.
ABF, through its subsidiary ACH Food Companies, has acquired Unilever's branded corn oil and corn products business in the US, Canada and Puerto Rico, for an all cash consideration of US$360 million (€368 million). ACH claims that the Unilever acquisitions will position it as a leader in the branded retail sector.
Peter Jackson, chief executive of Associated British Foods, said:"This acquisition is in line with our ongoing policy of investing in areas where we have strength and expertise. The successful integration of the former Procter & Gamble branded foodservice oils business demonstrates our track record in absorbing and adding value to such acquisitions. We are confident that we will develop Mazola and associated brands for the benefit of our shareholders."
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. The acquisition includes net tangible assets valued at 31 December 2001 at US$46 million.