Arla Foods to buy Nijkerk Dairy from FrieslandCampina

4 May 2009

European Commission and NMa approve acquisition

The European Commission and the Netherlands Competition Authority (NMa) have approved the acquisition by the Danish dairy cooperative Arla Foods amba of Nijkerk Dairy B.V. from Koninklijke FrieslandCampina N.V. The transfer has also been approved by the Nijkerk Dairy Works Council.

The transaction was completed today, 4 May 2009. It includes the Nijkerk Dairy daily fresh dairy business, its assets (plant, machinery, etc.) and the brands Breaker, Milk&Fruit, Kwarkyoghurt and Melkunie. A 10-year licence agreement has been entered into for the use of the Friesche Vlag brand for fresh dairy products in the Netherlands. FrieslandCampina is guaranteeing the supply of raw milk to the factory in Nijkerk until 1 January 2017.

Nijkerk Dairy is the new name of Friesland Foods Fresh. Nijkerk Dairy produces milk, buttermilk, natural and fruit-flavoured yogurt, quark yogurt, custard, porridge, Milk&Fruit and Breaker. In Nijkerk, fresh dairy products are produced under the brand Friesche Vlag and for supermarket private labels. Nijkerk Dairy employs 500 personnel in Nijkerk, including 150 temporary staff. Turnover in 2008 totalled EUR 240 million.

FrieslandCampina will remain active in daily fresh dairy in the Netherlands through FrieslandCampina Dagvers, some of whose products are sold under the Campina brand. It will also continue to use the Friesche Vlag brand in the Netherlands to market long-life dairy products and coffee creamers.

The sale of the plant at Nijkerk was one of the conditions imposed by the European Commission when it approved the merger between Friesland Foods and Campina on 17 December 2008. This was done to prevent FrieslandCampina from gaining a monopoly on the Dutch market for daily fresh dairy.