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ACH FOOD COMPANIES, INC. ENTERS AGREEMENT TO BUY UNILEVER'S
PORTFOLIO OF OILS AND FATS BRANDS IN MEXICO
ACH Food Companies, Inc. (ACH), a subsidiary of Associated British Foods (ABF)
plc, announced today that ABF has entered into an agreement to acquire Unilever’s
food oils brands in Mexico. The Mexican subsidiary will be managed by ACH in conjunction
with their existing oil business. Closing is subject to securing approval from
the Mexican regulatory authority.
This transaction involves the acquisition of Capullo, the leading premium canola
oil brand in Mexico; Mazola, one of the leading corn oil brands; and Inca, a leading
shortening product. In 2003, Capullo, Mazola and Inca, jointly had sales of US
$124 million.
ACH acquired the Mazola corn oil brand in the US from Unilever in 2002 and is
a leader in the branded, foodservice and private label oils sectors in the US,
Canada and Puerto Rico. Through this new acquisition, Mexico will now be added
to its market portfolio. “This proposed acquisition is aligned with our
strategy and core capabilities,” said Dan Antonelli, president of ACH Food
Companies. “We’ve expanded our rights to Mazola, our lead brand in
the US, and we’re adding two new premium brands, Capullo and Inca, in categories
with which we have great knowledge and competency.”
ACH plans to leverage its knowledge and marketing capabilities in the oil category
in order to grow the Capullo and Inca brands in much the same way it has grown
the Mazola brand in the US.
ACH plans to add approximately 135 employees, in marketing, sales, logistics,
human resources and finance positions in Mexico City. ACH will not acquire any
fixed assets, and no employees of Unilever are expected to transfer to ACH.
With seven plants across the United States, ACH Food Companies, Inc. markets a
broad range of products to the consumer and commercial food segments. These products
include Mazola Corn Oil, Karo Corn Syrup and Argo Corn Starch brands, specialty
shortenings and oil-based products, non-dairy spray dried products and cheeses,
spray dried savory ingredients and ingredient systems. ACH is a subsidiary of
London-based Associated British Foods (ABF), an international food, ingredients
and retail group.
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