FrieslandCampina sells the dairy activities in Russia. The Russian subsidiary Campina LLC transfers the dairy factory in Stupino to the German dairy group Ehrmann.
This strategic acquisition strengthens Ehrmann's market position in Russia and enables FrieslandCampina to focus on markets elsewhere, the companies said in a statement. Upon completion of this transaction, Ehrmann will become 100% owner of Campina LCC with its 650 employees, including assets and contractual obligations. Ehrmann will lead the dairy in Stupino (Moscow region) and further develop the Fruttis and Nezhny brands.
Evaluating markets
Roel van Neerbos, President FrieslandCampina Food & Beverage: "This sale is part of the previously announced strategy to evaluate FrieslandCampina's position in various markets. Under the umbrella of Ehrmann, our Russian dairy consumer branch will be able to further develop and realize its full growth potential can realize."
Christian Ehrmann, CEO of Ehrmann SE said in the statement: "This acquisition fits in with Ehrmann's strategy to increase market share in Russia with locally produced, strong brands." This agreement is subject to approval by the Russian competition authorities, as well as the authorities in Kazakhstan, Uzbekistan and Belarus. The transaction is expected to be completed by the end of June 2021.
Second sale
For FrieslandCampina it is the second sale of a part in a short period of time. Last week, the cooperative dairy group announced to sell Nutrifeed part to Denkavit. The factory in Stupino, Russia, is over 20 years old and was built by Campina Melkunie at the time. This investment received a lot of publicity at the time, because the building plans were announced in 1998. At the time, just under 10 years after the fall of the Berlin Wall, investments in Eastern Bloc countries were not yet self-evident.
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