NETHERLANDS: FrieslandCampina to buy Balkans dairies Imlek, Mlekara Subotica
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.
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 exec...
- Deal or no deal: Frozen sale makes sense for Kerry
- On the money: How Greencore is outperforming
- Comment: Mondelez digital strategy suffers blow
- JBS sees big opportunity from Primo Smallgoods
- Shopper trends: Promos can mean higher prices
- Kerry puts frozen food unit on block - reports
- Coca-Cola eyes long-term rewards with dairy push
- Post issues warning over US cereal sector sales
- UPDATE: Greencore eyes US$1bn US business
- Abraaj outbids Kellogg with fresh Bisco Misr offer