Dairy cooperative Arla has completed the acquisition of a Swedish cheese producer, after it received the approval of the country’s competition authority.
Arla agreed to acquire Falbygdens Ost from Finnish food group Atria for an undisclosed sum back in October. Now, the Swedish Competition Authority has granted the Danish producer permission to complete the deal, which could take effect next month.
“The acquisition is fully in line with Arla’s strategic commitment to developing the premium cheese segment,” the company said.
Henri de Sauvage, executive vice present for Arla in Sweden, said: “This is a good deal for customers, consumers and Arla’s owners. The employees at Falbygdens Ost represent a proud tradition of cheese-making, and we are now in a position to work closely with them to develop passion and interest in cheese among customers and consumers alike. Falbygdens Ost is a strategic complement to Arla’s own cheese-making business, and the purchase ensures profitable milk sales for our owners – the Arla farmers.”
Falbygdens Ost matures, processes and packages a portfolio of roughly 350 branded cheese products at its facility in central Sweden. The company generated revenues of 470m SEK ($54.45m) last year.
The emphasis now is on integrating the operations of the two businesses, as Arla’s senior integration manager explained.
Alex Racoveanu said: “All processes – from initial order to final delivery – have to be brought together in the shared systems. And in everything we do, our ultimate aim is to become our customers’ first choice in the premium cheese segment.”
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