Sector News

Lactalis agrees to acquire German milk processor Omira

May 25, 2017
Food & Drink

French dairy company Lactalis has agreed to acquire German dairy producer Omira for an undisclosed amount.

The milk processor has an output of more than 830 million kilograms of milk a year, as well as a range of products that includes UHT milk and dairy-based desserts. It is also a leading producer of lactose-free products with the brand Omira MinusL.

Lactalis will inherit Omira’s two facilities in Neuberg an der Donau, near Ingolstadt, and Ravensburg in southern Germany. It will also guarantee the milk price for Omira’s 2,600 suppliers for the next ten years.

The acquisition comes at a good time for Omira, which will have invested approximately €60 million in its two production sites by 2020. The cash injection will help it to increase the efficiency, flexibility and output of the plants in Ravensburg and Neuberg.

It settles speculation that Omira was looking for a big-name takeover, with Emmi and Arla previously mooted as possible buyers.

For Lactalis, it represents an opportunity to increase its sales in Germany – understandably Europe’s largest milk producer, as it has a higher population count than any other country on the continent and a larger total count of dairy cows.

Lactalis – usually quite secretive about its financials – turned over €16.5 billion in 2015, with Europe accounting for 65% of sales.

The company processed 15.6 billion litres of milk in the same year, with its product mix divided between 32% cheese, 25% liquid milk, 13% yogurts and desserts, 13% dairy ingredients, 10% butter and cream, and the remaining 7% accounted for by other products.

Source: Foodbev.com

Related News

September 18, 2020

Cargill to advance regenerative agriculture practices across 10m acres of farmland

Food & Drink

Cargill has announced that it is supporting farmer-led efforts to adopt regenerative agriculture practices on 10 million acres of crop land in North America by 2030. The initiative will focus primarily […]

September 17, 2020

PepsiCo pilots invisible digital watermark technology to boost recycling

Food & Drink

PepsiCo is trialling products encoded with invisible digital watermarks for more effective recycling. The technology is pegged as the “holy grail” that will make mechanical sorting more efficient. The beverage […]

September 17, 2020

Lactalis to acquire portfolio of Kraft Heinz branded foods

Food & Drink

Lactalis Group is positioned to acquire a portfolio of Kraft Heinz brands, expected to close in the first half of 2021. The dairy supplier will also be partnering with the […]