Swedish speciality vegetable oils and fats company Karlshamns has announced the acquisition of the UK's Kelanco Ltd.

Kelanco, which has an annual turnover of SEK15m (US$2.0m), specialises in flaked fats for the food industry. One of the main markets for flaked fats is the convenience food industry.

Karlshamns said the acquisition is in line with the company's strategy to strengthen its focus on high-value added speciality products.

"The acquisition provides Karlshamns with considerably improved expansion potentials and will generate positive profit effects in 2004 already," the company said.

"The acquisition of Kelanco's operations is a perfect strategic fit for Karlshamns, giving access as it does to products developed directly for the UK convenience food market…Kelanco will also serve as a production platform for the continued development of other European countries in the market segment for flaked fats," Karlshamns added.