Arla Foods has announced it is divesting its juice subsidiary Rynkeby Foods to allow it to focus on its "core business" of dairy products.
The dairy giant said it is initiating a sales process to identify the right buyer to take the Rynkeby business forward in its strategic development. The process is expected to be concluded by the end of the second quarter of 2016.
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Rynkeby Foods is a manufacturer of juice and cordials in the Nordic region.
Arla said it had spent the last four months analysing the strategic options and potential for Rynkeby. It said its management and board of directors have concluded a full sale of the subsidiary is the best long-term strategic solution for both Arla and Rynkeby.
"Over the past two decades Arla has sold off subsidiaries that do not have a direct link to dairy production in order to focus on our core business. Rynkeby is the last remaining subsidiary in the Arla Group not linked to milk, and it is our assessment that the Rynkeby business will be better suited under new ownership that can take the company to the next level in its future development," said Arla Foods vice-CEO Povl Krogsgaard.
"We have begun to approach potential buyers this week and will now go through the process of identifying the right buyer and best offer. We expect this process to be concluded by the end of the second quarter next year."
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