AAK increases its presence in the U.S. further as leading California based company is acquired

AAK has acquired the leading West Coast based vegetable oils company California
Oils Corporation from Mitsubishi Corporation of Japan. California Oils
Corporation, also known as CalOils, had last year revenues of approximately SEK
1,350 million and a volume of approximately 110,000 MT, with 65 employees.

“A strong presence on the U.S. West Coast has been priority for AAK since
several years. The West Coast encompasses 20 percent of the U.S. population and
this expansion has been identified as an important component of AAK’s long-term
growth strategy. The acquisition of CalOils will transform AAK into a true
national speciality and semi-speciality edible oils company, improving our
ability to serve existing customers on a national scale while at the same time
creating new customer opportunities”, says Terrence W. Thomas, President AAK
USA. “CalOils has important market positions up and down the West Coast. This
acquisition establishes AAK as the leading supplier of speciality and semi
-speciality oils to the bakery, dairy and chocolate and confectionery industries
in California and across the west coast of the U.S. and Canada. In the medium
term it also supports our U.S. foodservice platform, Oasis Foods, to develop
into a national supplier.”

CalOils’ facility, which is AAK’s fourth production site in the U.S., is based
in Richmond, California.

“This acquisition is an integral part of our company program AAKtion”, says Arne
Frank, CEO, AAK Group. “Not only will it strengthen AAK’s presence in a very
important market, we will also bring our customer co-development concept to a
national level in the United States and Canada. The acquisition will serve as a
platform for increased sales of speciality and semi-speciality products within
Food Ingredients and Chocolate & Confectionery Fats.”

The acquisition price is subject to final calculation of normalized working
capital and is expected to be less than 3 percent of AAK’s turnover on a cash
and debt free basis. The acquisition cost is funded by existing credit
facilities. The transaction is expected to be finalized between end of August to
end of September, 2016 and is expected to start contributing to AAK’s operating
profit from the third quarter, 2017.

Further information about the acquisition will be presented and discussed during
today’s Press & Analyst Conference at 1 p.m. CET, held in connection with AAK’s
Interim report for the second quarter 2016. To access the call, please register
in advance at www.aak.com by clicking the link for registration under the
Investor tab.

For further information, please contact:
Fredrik Nilsson                                  Terrence W. Thomas
CFO                                              President AAK USA
Mobile: +46 708 95 22 21                         Mobile: +1 908 552 8685
E-mail: fredrik.nilsson@aak.com                  E-mail: terry.thomas@aak.com

This information is information that AAK AB is obliged to make public pursuant
to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact persons set out above, at 08:10
a.m. CET on July 15, 2016.
AAK is a leading provider of value-adding vegetable oils & fats. Our expertise
in oils & fats within food applications, our wide range of raw materials and our
broad process capabilities enable us to develop innovative and value-adding
solutions across many industries – Chocolate & Confectionery, Bakery, Dairy,
Infant Nutrition, Foodservice, Personal Care, and more. AAK’s proven expertise
is based on more than 140 years of experience within oils & fats. Our unique co
-development approach brings our customers’ skills and know-how together with
our own capabilities and mindset for lasting results. Listed on the NASDAQ OMX
Stockholm and with our headquarters in Malmö, Sweden, AAK has 20 different
production facilities, sales offices in more than 25 countries and more than
2,700 employees. We are AAK – The Co-Development Company.