FrieslandCampina to acquire dairy companies in western Balkans

FrieslandCampina and Salford Capital Partners have signed a memorandum of understanding for the acquisition of Imlek and Mlekara Subotica in the Western Balkans to the FrieslandCampina network. Salford Capital Partners currently holds majority stakes in the two dairy companies of approximately 79% and 82% respectively This is the first substantial acquisition since the merger between Friesland Foods and Campina in 2008.

According to Cees ‘t Hart, CEO 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. This, together with FrieslandCampina’s current activities in Hungary, Romania and Greece, will give the group access to a total of about 76 million consumers in the region.

Imlek and Mlekara Subotica operate as independent dairy companies in the Western Balkans. Together they serve markets of around 25 million consumers. Total turnover amounts to approximately EUR270 million. Imlek has a portfolio of well-known, established brands with strong positions in the markets for ready to drink milk, yogurt, cheese and cream products. The brand portfolio of Mlekara Subotica consists mainly of added-value products, which account for more than half of its revenues and comprise various fermented and speciality products such as spreads and cheeses. Around one third of its revenues is attributable to ready to drink milk products (long-life and fresh).

Together the companies have around 1,470 employees at six production plants and four head offices in Serbia, Bosnia and Herzegovina, and the Former Yugoslav Republic of Macedonia. 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.