FrieslandCampina to Acquire Two Dairy Companies in Western Balkans
FrieslandCampina is strengthening its position in South-East Europe with the acquisition of dairy companies Imlek and Mlekara Subotica, which both have operations in the Western Balkans. This is the Dutch dairy co-operative’s first substantial acquisition since the merger between Friesland Foods and Campina in 2008.
FrieslandCampina is purchasing majority stakes in the two dairy companies of approximately 79% in Imlek and 82% in Mlekara Subotica from Salford Capital Partners. FrieslandCampina intends to acquire the remaining shares, which are traded on the Belgrade Stock Exchange.
FrieslandCampina’s route2020 strategy is designed to increase worldwide its position in dairy-based beverages, infant nutrition and branded cheese and to generate maximum value for the milk produced by the co-operative’s member farmers. According to Cees ‘t Hart, chief executive of Royal FrieslandCampina: “FrieslandCampina wants to grow in various markets and product categories. This is the first major acquisition since the merger between Friesland Foods and Campina. This acquisition strengthens our brand portfolio and our position in South Eastern Europe, one of the spearheads of our route2020 strategy.”
Imlek has activities under various brand names in Serbia, Montenegro, Bosnia and Herzegovina, and the Former Yugoslav Republic of Macedonia, while Mlekara Subotica has activities in Serbia. Together the companies have around 1,470 employees at six production plants. The total turnover of the two companies is about Eur270 million.
Combined with FrieslandCampina’s current activities in Hungary, Romania and Greece, the enlarged group will have access to a total of about 76 million consumers in the region. After the acquisition, the total number of FrieslandCampina employees in South-East Europe will increase to around 3,900, with a total of 14 plants processing milk for the market. The combination with FrieslandCampina’s existing activities in theSouth-East Europeregion creates a strong basis for further growth. The financial details of the deal have not been disclosed.
