Finnish agri-food company Lännen Tehtaat Group today (Thursday) announced that its Suomen Rehu subsidiary has bought 65% of the share capital of the food company Mildola Oy.
The purchase price of the shares acquired by Suomen Rehu Ltd was €3.9 million (US$5.23m). Suomen Rehu’s ownership of Mildola stood at 17.5% before the deal and is now 82.5%.
Mildola Oy is Finland’s leading manufacturer of vegetable oils produced through pressing. Mildola provides its domestic and international customers with refined vegetable oils and protein feed produced from rapeseed and soya.
Mildola’s net turnover in 2004 was €41m, its operating profit before depreciation was €2.4m and its profit before appropriations and taxes €0.7m.
Mildola fits naturally into the business operations of Lännen Tehtaat’s food and agricultural Divisions, Lännen Tehtaat said. Mildola is a significant buyer of Finnish rapeseed. The company’s most important products are refined vegetable oils for consumers and companies in the food industry. Suomen Rehu Ltd, as a buyer of rapeseed cake and soya bean meal (both by-products from Mildola’s food manufacturing process), is the company’s single largest customer.