Unternehmensgruppe Theo Müller has struck a deal to acquire a production site and associated brands from German dairy co-operative Hochwald Foods.
Financial details of the transaction were not disclosed.
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In a statement yesterday (19 November), privately owned Müller said the transaction covers Hochwald’s Lüneburg facility, including the 150 employees.
The Germany-headquartered dairy giant will also acquire all trademark rights and products of the Elinas and Lünebest brands. Production will continue at the Lüneburg plant.
Müller said the deal, which is subject to approval by competition authorities, will “complement” its dairy product portfolio in the German market, where it primarily operates in private label.
Hochwald acknowledged the transaction with Müller in its own statement. The plant and asset sale supports its strategy of focusing on its “core” offerings, the company said.
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By GlobalDataThe dairy group also noted that it sees “limited” development prospects for the two brands within its own yogurt segment, a category that is “highly competitive”.
Detlef Latka, CEO of Hochwald Foods, said: “The planned sale will allow us to use our resources more effectively and further expand our strengths in our core business areas such as drinking milk, condensed milk, quark, cheese, and ingredients for Germany and export, particularly to third countries.”
Hochwald’s production is carried out at sites in Germany and the Netherlands. The co-operative employs approximately 1,970 people. Its other brands include its namesake line, along with Bärenmarke and Tuffi, while the business also supplies to private-label customers.
In 2024, the company generated sales revenues of €2.01bn ($2.3bn), up 2% from the prior year. EBITDA rose by €22.9m to €161.2m, Hochwald reported in June.
Domestic sales accounted for 59% of turnover, while exports made up the rest.
Consumer product exports benefited from higher volumes to Arab markets, the company added.
In 2023, Hochwald acquired the Tuffi brand from Müller after clearance by the German regulator Bundeskartellamt. The purchase followed a ruling that required Müller to divest two brands as a condition for acquiring parts of FrieslandCampina’s German business.
As part of that transaction, Hochwald also secured the licence to produce and sell rice pudding under the Landliebe brand.
Meanwhile, Müller operates dairy subsidiaries across continental Europe and the UK.
In April, the group entered the UK functional food market with the acquisition of Biotiful Gut Health, a kefir drinks and yogurts producer.
