FrieslandCampina Strengthens its Position in Asia With $457 Million Acquisition

 Breaking News
  • Highland Spring Selects Mainsaver CMMS Spidex has announced that Highland Spring, a leading supplier of natural source bottled spring water, has selected Mainsaver CMMS to support best-practice maintenance at its plant in Blackford, Perthshire. The new facility, part of a £50 million investment programme, officially opened in July 2017 and was designed to increase Highland Spring’s production capacity by 50 [...]...
  • Ornua Delivers Record Revenue Ornua, Ireland’s largest exporter of Irish dairy products which supplies to over 110 countries worldwide, has reported record revenue of €2.1 billion for the year ended 30 December 2017. It marks the first year of Ornua’s new five-year growth plan, ‘Ornua 2021’, which positions the business as a leading global dairy organisation that delivers results [...]...
  • Danish Crown Becomes European Market Leader in Pepperoni Toppings For Pizzas Danish Crown has acquired the Danish pepperoni giant DK-Foods to become the European market leader in pepperoni toppings for pizzas. DK-Foods will operate as a separate business unit under Danish Crown’s subsidiary Tulip Food Company and will spearhead the group’s global focus on pizza toppings. Pizza is the favourite choice of fast food in Denmark, and [...]...
  • Iceland Seafood International Acquires Oceanpath Iceland Seafood International is acquiring Oceanpath Group, the leading fresh fish company in Ireland owning the iconic Dunn’s of Dublin brand, which has been operating since 1822. The acquisition marks a significant step in Iceland Seafood International’s strategy of delivering strong organic growth combined with strategic acquisitions of first rate seafood companies into the group. Iceland [...]...
  • KHS Presents Innovative Block Systems For the Sensitive Range Yoghurt is no longer spooned out of the pot but drunk. Breakfast is no longer just eaten at the kitchen table but also on the hoof. And it should all be as healthy and sustainable as possible. This is one of the reasons why the demand for smoothies, milk and dairy products is steadily growing. [...]...

FrieslandCampina Strengthens its Position in Asia With $457 Million Acquisition

FrieslandCampina Strengthens its Position in Asia With $457 Million Acquisition
March 12
11:49 2012

Royal FrieslandCampina has purchased a controlling interest in Alaska Milk Corporation, one of the largest dairy companies in the Philippines and listed on the Philippine Stock Exchange. FrieslandCampina is paying $302 million to increase its stake from about 8.1% to 68.9% by purchasing the shares held by the Uytengsu family, the founders and controlling shareholders of AMC.

In compliance with regulatory requirements, FrieslandCampina will launch a tender offer for the remaining outstanding publicly traded shares at an identical price, bringing the full value of the acquisition up to $457 million (Eur349 million). The acquisition adds a market of approximately 100 million consumers to FrieslandCampina’s existing consumer base.

With annual revenues of over Eur200 million, AMC has emerged as the leading player in the Philippine milk industry. For over thirty years it has displayed strong growth, consistent brand leadership in the canned liquid milk category and a strong and growing position in powdered milk. It has also recently expanded into higher value-added milk products, particularly in the ready-to-drink milk category. The company employs about a thousand people and has a production facility in San Pedro, Laguna.

This transaction will strengthen FrieslandCampina’s position inAsia, which is a strategic growth area for the dairy multinational. FrieslandCampina is already present in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore.

The acquisition will strengthen FrieslandCampina’s Consumer Products International business that also produces and sells dairy products in the Middle East and Africa, increasing its annual global revenues from Eur2.5 billion to nearly Eur2.7 billion. The deal furthers FrieslandCampina’s strategic route2020 goals.

Cees ‘t Hart, chief executive of Royal FrieslandCampina, comments: “Adding AMC gives us a strong, high-growth platform in the Philippines and access to a market of around 100 million customers. It also confirms our international ambition to enter markets where FrieslandCampina can create value. AMC’s management has already built up an outstanding position in the Philippine market. Together we can expand this position by introducing tried and tested FrieslandCampina concepts that have been successful in other parts of the world.”

FrieslandCampina will fund the transaction through short-term debt financing, preserving balance sheet flexibility. The transaction is expected to close around May 2012 and is subject to customary closing conditions, including receipt of certain regulatory approvals.

To receive your free sample copy of Food & Drink Business News Europe please complete Form on our Subscription Page.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 21, 2018World Olive Oil Exhibition
  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here