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Lactalis buying Nestle Malaysia’s chilled dairy business
Posted on Wednesday, 10 October 2018 07:10
French dairy products maker Lactalis has signed on the dotted line to pick up the chilled dairy unit of Nestle Malaysia.
Under the terms of the transaction, which is expected to complete in January 2019, the buyer will pay MYR 155.30 million (USD 37.34 million) for the business and will also take over operations at its Petaling Jaya factory.
The acquisition is in line with Lactalis’ plans to make Malaysia the operations hub of its dairy division in the ASEAN region, with a view to expanding its product portfolio.
At the same time as announcing the deal, Nestle also unveiled plans to invest MRR 100.00 million into its Milo factory in Chembong in a bid to drive growth, improve efficiency and enhance competitiveness.
Commenting on the developments, Nestle Malaysia chief executive Alois Hofbauer stated: “We see great potential that these investments will allow us to strengthen our focus on strategic core businesses that can deliver good long-term growth and are aligned with evolving consumer needs.
“At the same time, this initiative will pave the way for the chilled dairy business and PJ factory to flourish under the new leadership of Lactalis.”
No further details have been disclosed at this time.
Zephyr, the M&A database published by Bureau van Dijk, shows that Lactalis’ most recent acquisition was announced in mid-September, when it agreed to buy the infant formula business of Aspen Pharmacare Holdings for EUR 740.00 million.
This was preceded by January’s agreement to take over the Icelandic Milk and Skyr Corporation, a New York-based strained yogurt manufacturer, from Emmi, Revelry Brands and Siggi Hilmarsson for an undisclosed sum.
Lactalis’ previous targets have included Itambe Alimentos, Stonyfield Farm and Omira.
The buyer, which claims to be the world’s number one dairy group, has a history dating back to 1933 and has traded under its current moniker since 1999.
It produces cheese, milk, cream, butter and milk powder, among other products, and now employs some 75,000 people across 44 countries worldwide.
© Zephus Ltd