Bel enters negotiations to offload Leerdammer and other assets to Lactalis

Lactalis has entered into exclusive negotiations with Bel Group to acquire its European cheese brand Leerdammer, plus assets in four countries.

The companies have signed a unilateral promise, which will see Lactalis acquire the Leerdammer brand, Royal Bel Leerdammer, Bel Shostka Ukraine and its businesses in Italy and Germany.

Bel subsidiary Sicopa will sell the aforementioned assets in exchange for Lactalis’ 23.16% equity stake in Bel. Following completion of the deal, Lactalis will hold a remaining 0.9% stake in Bel.

As of 31 December 2021, Leerdammer and Bel Shostka Ukraine revenues stood at approximately €500 million. Since Bel bought Leerdammer in 2002, its sales and earnings have allegedly nearly doubled.

The deal will provide Lactalis entry into the Dutch cheese market and production in Holland through three manufacturing plants. Lactalis says the acquisition will also boost its European presence, particularly in Italy and Germany, and further solidify its presence in Ukraine.

As a result of the deal, Bel aims to boost growth of its three complementary market segments – dairy, fruits and plant-based – and step up its moves in the Asia Pacific and North America markets. The divestiture is in line with its strategy, as it aims to move beyond cheese products and become a major healthy snacking player.

Bel Group chairman and CEO, Antoine Fievet, said: “In line with our strategic priorities, we continue to grow our business and take on three further market segments, namely dairy, fruit and plant-based, and so reinforce our healthy snacking major player position.

“With this asset sale deal we reaffirm our independent family business model that gives us freedom to take a long-term view. For Leerdammer, this deal means a unique chance to have the backing of Lactalis, which will have the wherewithal to support it for its upcoming challenges.”

Lactalis Group chairman, Emmanuel Besnier, said: “We welcome Leerdammer and we’re excited by the prospect of building on the growth of this iconic brand that people adore. The transfer to us of Bel’s Italian, German and Ukrainian sales subsidiaries will boost our facilities in these countries benefiting both Leerdammer and other Bel product sales on these markets.”

The deal is expected to be completed by the end of summer 2021, following regulatory approval.