Emmi sells stake in Spanish goat cheese business

Swiss dairy giant Emmi has sold its 80% majority stake in the Spanish goat cheese manufacturer Lácteos Caprinos to Lácteas García Baquero. The new owner has a long tradition and extensive expertise in the cheese business as well as a complementary product portfolio and sales network, the company says.

The Spanish company specialises in the manufacture of goat’s milk products. With around 40 full-time employees, it achieves annual sales of around €10 million.

Emmi says it is based on adjustments to the Europe-wide procurement strategy for goat milk, and the consistent expansion of the niche business with goat milk products remains strategically important for the larger firm.

For Emmi, the sale results in a one-off charge of around CHF15 million, which will affect EBIT in the 2020 financial year. The majority of this loss is due to the ‘goodwill recycling’ principle required by Swiss GAAP FER, which means that the goodwill offset against equity at the time of acquisition is taken into account when determining the profit from the sale.

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