EGM Walhorn and Arla Foods to merge

Dairy cooperatives Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) and Arla Foods have announced their intention to merge. The boards of directors have circulated a proposal to their members and both companies are expected to vote on the proposal in mid May.
Both dairy cooperatives are owned by farmers across different countries. Arla Foods amba has approximately 12,600 cooperative farmer members in Sweden, Denmark, Germany, Belgium, Luxembourg and the UK. The approximately 800 members of EGM Walhorn are located in Belgium, Germany, and the Netherlands. The dairy operations belonging to the EGM produce a total of around 550 million kilograms of milk per year.

“This proposed merger will allow Arla to pursue its growth plans together with EGM Walhorn. The Walhorn production site complements our production sites in Pronsfeld, in Germany, and Nijkerk, in the Netherlands. In addition, EGM Walhorn would provide us with an opportunity to grow our milk pool across Europe and the merger would be an important step towards achieving our strategic ambitions, which are focused on growth,” explains Åke Hantoft, chairman of Arla Foods.

The proposal would see EGM Walhorn retain its cooperative status while joining forces with Arla Foods amba, and would allow the business to continue its familiar cooperative traditions. The individual EGM Walhorn members remain members of the cooperative ­ and their democratic rights are unchanged. In addition, EGM Walhorn would also have its own representatives on the board of directors and on the board of representatives in Arla Foods amba. Completion is being sought for July 2014, subject to approval.