Lantmännen expands its oats capacity via the acquisition of a production facility in Kimstad, Norrköping

Press releases, 2019

Lantmännen has signed an agreement with the British company Tate & Lyle, for the acquisition of a production facility in Sweden. The acquisition gives Lantmännen opportunities to expand its oats capacity and invest in additional processing of oats. 

Lantmännen is acquiring an oat mill with a capacity of 55,000 tons and an oat ingredients manufacturing facility in Kimstad outside Norrköping. Oat is a key crop for Swedish agriculture and Lantmännen’s members. There is a big global interest in oat, a crop that offers several important health benefits, and demand for oat products is increasing sharply. This additional oats capacity will enable Lantmännen to meet the growing demand from customers in the Nordic food industry.

“Oats are a strategic investment area for Lantmännen and the further development of our oats business is a key part of our “Field to Fork 2030” strategy. We are already strongly positioned in oats and this acquisition gives Lantmännen access to a modern mill that complements our existing production capacity within oats and creates a unique opportunity to develop and manufacture ingredients based on oats as the raw material,” says Per Olof Nyman, CEO and Group President of Lantmännen. 

Thanks to their high quality, oats from the Nordic countries have gained a strong standing in the world. Lantmännen is the Nordic leader in oats with three oatmeal mills in Sweden, Denmark and Norway, and is taking a long-term approach to investments in processing, research and innovation within oats. Lantmännen markets food and ingredients based on oats to the food industry and is a driving force in research and innovation to develop future oat products. Lantmännen pursues research both internally and via partners such as ScanOats in Lund and the partly owned Swedish biotech company CropTailor.

The facility is acquired from Tate & Lyle, a British listed company (TATE: LON) that supplies specialty food ingredients to both food and other industries. The facility, that has around 35 employees, is currently producing oat protein, beta glucan and oat flour. The manufacturing processes at the facility have many similarities with production at Lantmännen Reppe and once the acquisition has been completed, the facility will become part of the Energy Sector at Lantmännen.

“Lantmännen’s Energy Sector already has specialist expertise within the processing of wheat, and oat products will be an excellent complement to our current business. The acquisition enables Lantmännen to increase the production capacity of heat-treated oats significantly and gives us an opportunity to create added value within oat processing. It also creates synergies both within the Energy Sector and our other businesses at Lantmännen,” says Magnus Kagevik, Head of the Energy Sector at Lantmännen. 

The agreement was signed on March 22 and the transaction is expected to be completed by end of March.

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For more information, please contact:  

Magnus Kagevik, Head of the Energy Sector at Lantmännen
: +46 724 52 63 83

Lantmännen Press Office
Phone: +46 10 556 88 00