Dutch food group Wessanen revealed today (Thursday) that it had sold its US dairy unit to National Dairy Holdings for US$400m. The company has put on hold its planned sale of European dairy firm Leerdammer however, blaming the adverse climate from foot and mouth disease for the delay in seeking a buyer.
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The sale of Marigold Foods and Crowley Foods, leading regional dairies in the northeast and midwest of the US, to National Dairy, is still subject to certain conditions and regulatory approvals. Both companies expect the deal to be completed by the end of the second quarter of 2001.
National Dairy is a partnership between leading US dairy industry operators and Dairy Farmers of America, the largest dairy farmer-owned marketing cooperative.
Wessanen announced last October that it planned to concentrate on its core health and speciality food market and put its dairy operations in Europe and the US up for sale. The company still planned the sale of Leerdammer but said the current investment climate in Europe had been affected by foot and mouth disease.
Meanwhile, Wessanen said that they expected operating profit for 2001 excluding the dairy operations to rise by at least 15%. It also forecasted that first half profits would see growth by between 3% and 5%.
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By GlobalDataClick here for Wessanen press release
