FDBusiness.com

Swiss dairy group Emmi has taken full control of Mittelland Molkerei by acquiring a 40 % stake from AZM Verwaltungs, the investment firm of the Mittelland Milk Producers’ Cooperative (MPM).

Based at Suhr in Switzerland, Mittelland Molkerei was founded in 2005, from which time it was 60 % owned by Emmi and 40 % owned by the AZM Verwaltungs (formerly the Aargauer Milchverband). At the Suhr site, Emmi processes milk into butter, cream and consumer milk (pasteurised and UHT). It has been continuously modernised over the past ten years, and the Operational Excellence programme has helped it to develop into an efficient and productive facility.

According to Urs Riedener, chief executive of Emmi: “The purchase of the 40 % share package and the associated complete takeover of Mittelland Molkerei is evidence of Emmi’s clear commitment to Switzerland.”

In Suhr, Emmi generates sales of roughly SFr500 million (Eur460 million) and employs around 350 people. The complete takeover does not affect plant management or the employees of Mittelland Molkerei. Since the company was already integrated into the Emmi Group and is fully consolidated, the acquisition will not impact sales figures either.

The parties have agreed not to disclose the purchase price. In addition to a cash component, part of the acquisition price, amounting to SFr34 million, was settled with the transfer of a number of registered shares in Emmi, which will come from the stake of the majority shareholder in Emmi, the Central Switzerland Milk Producers Cooperative (ZMP). The Mittelland Milk Producers’ Cooperative therefore participates directly in Emmi and ensures broader geographical support from the farming shareholders.