Lactalis is poised to strike another acquisition, this time on its own turf in France, as the dairy giant enters talks with Triballat.
Triballat, based in Rians in the Cher department of the Centre-Val de Loire region, is in “exclusive negotiations” with Lactalis.
“The transaction remains subject to the information and consultation process with the relevant employee representative bodies, as well as the required regulatory approvals under merger control regulations,” according to a joint statement.
Triballat generated revenues of €365m ($415.5m) last year, compared to €31.2bn for its privately-owned French dairy peer.
Reflecting its location, family-owned Triballat makes the Rians cheese brand. It also produces protected designation of origin (PDO) cheeses such as Époisses, Crottin de Chavignol and Selles-sur-Cher.
Lactalis claims to be the “world's leading player in PDOs”.
Triballat operates 17 production plants, with 14 located in France, one in Spain and two in the US.
According to the statement, “joining Lactalis would help write the next chapter of this entrepreneurial, industrial and human adventure”, including Triballat’s 1,600 employees.
Founded in 1901, Triballat specialises in goat’s cheese and also produces faisselles cheeses and dairy desserts. Some 30% of its annual revenue is generated overseas.
“With its strong commitment to regional heritage and its recognised expertise in promoting local terroirs and protected designations of origin through its portfolio of 42 PDO cheeses, Lactalis would continue to develop these brands both in France and internationally,” the statement read.
Triballat has also built up its business through M&A, including deals for Laura Chenel and Marin French Cheese, both in the US, and Goshua in Spain.
“Guided by the same vision of excellence, a deep attachment to our local roots and strong family values, we are convinced of the relevance of this transaction,” chairman Hugues Triballat and his counterpart at Lactalis, Emmanuel Besnier, said in the joint statement.
“We share the same ambition: to preserve a remarkable heritage while giving it the means to continue its development in France and internationally.”
Earlier this month, Lactalis also struck a deal with the Agropur dairy cooperative in Canada.
The transaction included the Quebec-made brands Oka, Monsieur Gustav and L’Extra, along with the Oka and Saint Hyacinthe production facilities in the same province.
In June, the French dairy major also snapped up Protein Works in the UK, a manufacturer of protein-centric powders, shakes and snack bars.
Lactalis also emerged as the winning bidder last year for New Zealand-headquartered Fonterra’s consumer-facing business outside of China, adding the brands of Mainland, Anchor, and Perfect Italiano to its portfolio.
