Swedish fluid handling, centrifugal and heat transfer company Alfa Laval has signed an agreement to acquire edible oil and biofuel processing specialist Desmet, part of the Desmet Ballestra Group, the companies announced.

The acquisition, which will operate as a stand-alone entity within Alfa Laval’s Food & Water Division, will strengthen Alfa Laval’s position in the markets for edible oils, biofuels, and plant and animal-based proteins for food and feed, according to the 31 March statements.

Expected to close during the second quarter of this year, the transaction is subject to customary conditions.

“It will add know-how and expertise to accelerate future innovations within food, feed and biofuels – and strengthen our ability to support the transformation towards renewable fuels,” Alfa Laval president and CEO Tom Erixon said.

Headquartered in Brussels, Belgium, Desmet has around 1,000 employees in Europe, India, Latin America, North America and Southeast Asia. Last year, the business to be acquired had a turnover of €300M (US$330M).

The operational units and brands of Rosedowns and Stolz were included in the transaction, the companies said.

The Desmet Ballestra Group is currently owned by Financière DSBG, and ultimately controlled by European specialist financier Kartesia and US investment firm Farallon Capital.

Stockholm-headquartered Alfa Laval specialises in heat transfer, centrifugal separation and fluid handling systems, and is active in the energy, marine and food & water sectors in around 100 countries.