NETHERLANDS: FrieslandCampina to buy Balkans dairies Imlek, Mlekara Subotica

By Michelle Russell | 2 February 2012

FrieslandCampina said the acquisitions are part of its route2020 strategy

FrieslandCampina said the acquisitions are part of its 'route2020' strategy

Dairy giant FrieslandCampina has signed a deal to buy Balkans processors Imlek and Mlekara Subotica.

FrieslandCampina said today (2 February) it would buy 79% of Imlek and 82% of Mlekara Subotica from private-equity firm Salford Capital Partners. Financial details of the transactions were not disclosed.

Together, Imlek and Mlekara Subotica generate annual turnover of around EUR270m (US$354.2m).

FrieslandCampina said Imlek's "strong position" in the Serbian retail market will provide it with "an attractive entry point" into the western Balkans and neighbouring markets. Its brand portfolio includes ready to drink milk, yoghurt, cheese and cream products.

Mlekara Subotica's brand portfolio comprises mainly of added-value spreads and cheese products, which account for more than half of its revenues.

FrieslandCampina said the acquisitions are part of its 'route2020' strategy to "increase its global position in dairy-based beverages, infant nutrition and branded cheese". The company said it intends to acquire the remaining shares in both companies.

"FrieslandCampina wants to grow in various markets and product categories," said CEO Cees 't Hart. "This acquisition strengthens our brand portfolio and our position in south-eastern Europe, one of the spearheads of our route2020 strategy."

Together, the Serbia-based firms employ around 1,470 staff across six production plants and four head offices in Serbia, Bosnia and Herzegovina, and the Former Yugoslav Republic of Macedonia.

The deal is the first major acquisition for the firm since the merger between Friesland Foods and Campina in 2008. The merger created a EUR9.1bn dairy giant.

The purchase of Imlek and Mlekara Subotica is expected to close in the next few months and is subject to certain regulatory approvals.

Sectors: Dairy, Emerging markets, Mergers & acquisitions

Companies: FrieslandCampina

View next/previous articles

Currently reading -

NETHERLANDS: FrieslandCampina to buy Balkans dairies Imlek, Mlekara Subotica

There are currently no comments on this article

Be the first to comment on this article

Related articles

UPDATE/BELGIUM: FrieslandCampina sees IDB buy as "important" purchase

FrieslandCampina has said its acquisition of The Irish Dairy Board's Belgian cheese packing operation is an "important" purchase for the company as it looks to expand its position in the sector.

IRELAND/BELGIUM: IDB to sell Belgian cheese subsidiary

The Irish Dairy Board (IDB) is to sell its Belgian continental cheese packing operation to FrieslandCampina.

Editor's choice: the highlights on just-food this week

The UK dairy sector was in the spotlight this week, with the proposed merger between Arla Foods and local co-op Milk Link and the annual loss reported by Dairy Crest. just-food interviewed senior executives from Arla and Milk Link to discuss the combination and reported on Dairy Crest's plans to increase returns from its troubled dairies business. Elsewhere, we reported on two sustainability events held in London, including the annual conference on the Round Table for Responsible Soy. And, further afield, Heinz revealed it was looking for more acquisitions in emerging markets while US rival General Mills secured a deal to buy Brazilian firm Yoki Alimentos.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page