News Takeover
Lactalis makes multibillion-dollar takeover in cheese
The American food giant Kraft Heinz is selling a number of cheese brands. These are taken over by the French Lactalis Group, the second largest dairy in the world.
Under the agreement, the dairy giant will acquire several Kraft brands (Cracker Barrel, Breakstone's, Polly-O and Athenos) for a total of $3,2 billion. Factories will also be taken over and all 750 employees will be transferred to the Lactalis Group. The transaction is expected to close in the first half of 2021.
The transaction includes Kraft Heinz's natural, grated, cultured and specialty cheese businesses in the US and Canada and other international trade. Kraft does not sell all cheese brands and retains the Philadelphia, Cream Cheese and Velveeta Processed Cheese, among others.
US second market for Lactalis
Lactalis operates in 51 countries and has been active in the US market for over 40 years. With this acquisition, America will become the second largest national market for the French dairy company.
Emmanuel Besnier, CEO of Lactalis, said the acquisition will take Lactalis' US operations to the next level. “The Kraft brand is synonymous with cheese in America,” said Besnier. "This deal also allows us to further grow the brand internationally with our products."
Chanti Oussoren
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