South Africa’s Woodlands Dairy Group has acquired Ladismith Cheese Company from Sea Harvest Group.
Financial terms of the deal, which includes the Ladismith Cheese subsidiaries Ladismith Powder Company and Mooivallei Suiwel, were not disclosed.
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In a statement, Woodlands Dairy Group described the transaction as a “significant advancement” in its “strategic growth trajectory, further solidifying its dedication to the South African dairy industry while enhancing supply chain efficiencies and expanding its consumer offerings”.
Ladismith Cheese, founded in 1999, manufactures cheese, butter and milk powder. It is located in the town of Ladismith in the western Klein Karoo region of South Africa.
According to its website, the group has a daily milk intake of 200,000 litres. It turns out around 700t of cheese and 200t of butter each month.
The products are distributed into the foodservice, retail, and wholesale channels across South Africa, as well as into select markets in sub-Saharan Africa.
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By GlobalDataLex Gutsche, chairman of Woodlands Dairy Group, said the transaction will “expand the group’s geographical production facility presence, reaching the full breadth of South Africa, bringing us closer to more farmers and customers”.
According to Woodlands Dairy, integrating Ladismith Cheese into the business is expected to allow the group to “broaden” its product portfolio, “expand” its customer and channel base, “leverage synergies” across the organisation and “drive operational efficiencies” throughout the group.
Woodlands Dairy Group, which includes Woodlands Dairy and wholly owned subsidiary Fairfield Dairy, focuses on UHT milk, yoghurt, and cheese, along with custard, flavoured milk and a range of other dairy products sold under the First Choice brand.
The group also processes, produces and packages dairy goods for First Choice and for private-label lines supplied to South African retailers.
Woodlands Dairy Group CEO Helen McDougall said: “By integrating Ladismith’s established regional presence and expertise with our extensive network, we are well positioned to provide customers with an enhanced and more specialised product portfolio.”
Ladismith Cheese will retain its existing brand identity and continue to trade under its current name, while drawing on the “leadership and expertise” of Woodlands Dairy Group, according to the statement.
Woodlands Dairy Group is owned by Gutsche Family Investments, alongside a 25% equity stake held through Dream World Investments 481.
Finalisation of the deal is subject to regulatory approval.
