AAK Completes Divestment of NJ Foodservice Facility

Published January 2, 2025

On Oct. 23, AAK announced an agreement to divest its foodservice facility located in Hillside, N.J. The transaction was finalized on Dec. 31, resulting in a one-time positive cash flow impact of approximately $600 million Swedish krona in the fourth quarter of 2024. The divestment is not anticipated to have a material effect on the company’s profit and loss statement.

In 2024, the Hillside facility represented about 5 percent of AAK’s total volumes and approximately 1 percent of its operating profit. As a result, the divestment is expected to increase the group’s operating profit per kilo by approximately 4 percent, assuming no other changes.

On Oct. 23, the same day the divestment of Hillside was announced, AAK also outlined plans to invest in a new facility to replace its existing foodservice site in Dalby, Sweden. While the plans are still being finalized, the company confirmed that the new site is expected to be located in Staffanstorp, representing a significant step in itss efforts to strengthen and future-proof foodservice operations across Europe.

AAK specializes in plant-based oils that are the value-adding ingredients in the products people love to consume. At the heart of AAK’s offering is Customer Co-Development, combining a desire to understand what better means for each customer with the unique flexibility of our production assets and deep knowledge across products and industries.

AAK’s 4,200 employees support its close collaboration with customers through 25 regional sales offices, 15 dedicated Customer Innovation Centers and support of more than 20 production facilities. Listed on Nasdaq Stockholm and with headquarters in Malmö, Sweden, AAK has been Making Better Happen for more than 150 years.

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