Swiss dairy group Emmi is acquiring a 40% stake in Brazilian dairy processor Laticínios Porto Alegre Indústria e Comércio.
The Brazilian business is based in Ponte Nova in the state of Minas Gerais and is one of the five largest companies by milk collection in the region, Emmi said.
Announcing the deal, Emmi suggested Laticínios Porto Alegre benefits from “strong positions” in cheese, UHT milk and butter. The Brazilian firm also manufactures whey powder for dairy manufacturers operating in Brazil.
In 2016, the company generated sales of approximately BRL500m (US$157.1m). The group operates two production facilities in Ponte Nova and Mutum. It also recently purchased production infrastructure in Barbacena to focus on the manufacturing of fresh cheese products.
“With this transaction, Emmi is strengthening its presence in Brazil and moving ahead with its programme of international growth,” Emmi stated. “By acquiring this stake in Brazil, Emmi is strengthening its presence in a country that has been on the company’s watch list for a number of years.”
At present, Emmi exports cheese fondue and raw milk cheeses from Switzerland to Brazil.
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The remaining 60% holding in the Laticínios Porto Alegre, which was founded in 1991, will be retained by brothers José Afonso and João Lúcio Barreto Carneiro. Carneiro is the company’s CEO and he will stay in the company to help “drive forward its future development” in cooperation with Emmi.
Emmi’s CEO, Urs Riedener, said: “Laticínios Porto Alegre is a healthy company that has also done an excellent job in the recent years of economic difficulty. Its strong position provides Emmi the possibility of complementing its product portfolio with innovative product and marketing concepts, thereby creating additional opportunities in a market with a great deal of potential over the long term.”
Financial details of the transaction were not disclosed.