FrieslandCampina said the deal to sell Campina LLC, struck for an undisclosed sum, would allow the co-op “to focus on consumer markets elsewhere”.
Roel van Neerbos, president of FrieslandCampina’s consumer-facing Food & Beverage division, said: “This divesture is part of FrieslandCampina’s previously-announced strategy to review its position in various markets. Under Ehrmann’s umbrella, our Russian consumer dairy business will be able to further develop and realise its full growth potential.”
Ehrmann is set to acquire a dairy facility in Stupino, as well as the brands Fruttis and Nezhny. The German business will also be the distributor of FrieslandCampina’s Friso specialised-nutrition products in Russia.
Christian Ehrmann, the CEO of Ehrmann, said: “This acquisition reflects Ehrmann’s strategy of growing its market share in Russia with locally produced, strong brands.”
The deal is subject to the regulatory approval of authorities in Russia, Kazakhstan, Uzbekistan and Belarus. The closing of the transaction is expected by the end of June.
Last week, FrieslandCampina announced an agreement to sell its Nutrifeed animal nutrition business in order to focus on consumer products.