Swiss dairy group Emmi has acquired the 40% of shares it did not already hold in Mittelland Molkerei in a deal that will see it take full control of the Suhr-based company.
Emmi purchased the stake from AZM Verwaltungs, the investment firm of the Mittelland Milk Producers’ Cooperative (MPM), for an undisclosed sum. While the parties agreed not to disclose the purchase price, they did reveal that CHF34m – “part of the acquisition price” – will be settled through the transfer of Emmi shares.
Mittelland Molkerei was founded in 2005, as a joint venture between Emmi and AZM Verwaltungs
At the Suhr site, Emmi processes milk into butter, cream as well as pasteurised and UHT milk. Emmi said that the business has been “continuously modernised over the past ten years”.
The facility generates revenue of around CHF500m annually and employs approximately 350 people. The takeover will not impact the functioning of the site, Emmi said. The company added that since the business was already integrated into Emmi it will not effect sales figures either.
According to Urs Riedener, CEO of Emmi: “The purchase of the 40 % share package and the associated complete takeover of Mittelland Molkerei is evidence of Emmi’s clear commitment to Switzerland.”
According to MainFirst analyst Alain Oberhuber the “tactical move” will “simplify Emmi’s organisation and will deliver small cost synergies”. Oberhuber added that continued investment in the facility meant Emmi is taking control of “one of the most efficient production sites in Emmi Switzerland”.