Swedish agriculture cooperative Lantmännen has agreed to acquire Tate & Lyle’s Sweden-based oat ingredients business.

The companies did not disclose the financial details of the transaction, which is expected to be completed later this month.

Lantmännen will acquire an oat mill with a 55,000t capacity and an oat ingredients manufacturing facility that is located in Kimstad outside Norrköping.

Lantmännen Group president and CEO Per Olof Nyman said: “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.”

Headquartered in Stockholm, Sweden, Lantmännen is engaged in the marketing of oat-based products and ingredients to the food industry. It operates three oatmeal mills in Sweden, Denmark and Norway.

With the acquisition of Tate & Lyle’s oats facility, Lantmännen aims to meet the growing demand from customers in the Nordic food industry.

Currently, Tate & Lyle’s Swedish facility has approximately 35 employees and is engaged in the production of oat protein, beta glucan and oat flour.

Upon completion of the deal, the facility will be part of the company’s energy sector.

Lantmännen Energy Sector head Magnus Kagevik said: “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.”