Emmi subsidiary Surlat merges with Quillayes to form new company

As of 29 August, Chilean dairy company Surlat has merged with competitor Quillayes to form new company Quillayes Surlat.

Major Swiss milk processor Emmi currently holds 73.5% of the shares in Spanish subsidiary Kaiku, which in turn now owns a majority stake of 51.5% in Quillayes Surlat. As a result, Emmi will hold a 37.8% stake in Quillayes Surlat. Details of the purchase were not disclosed.

The deal was made with the purpose of strengthening business for Emmi in Latin America. The collaboration will result in the newly founded company becoming number four in the Chilean dairy market.

Quillayes is a well-established dairy brand, producing cheese, yogurt, butter and cream in Southern Chile and Calera de Tango. Surlat’s focuses are UHT milk and other dairy products, with strong emphasis on lactose-free products.

Emmi and its subsidiaries currently have a presence in 14 countries. The merging of Quillayes and Surlat contributes to Emmi’s aim of strengthening its international presence. It is particularly focused on growth in Latin America and already has notable positions in this market.

This move follows on from Emmi’s increase of its stake in Brazilian dairy producer Laticínios Porto Alegre from 40% to 70% last June. As well as holding Mexican company, Mexideli, Emmi acquired a 66% stake in Austrian milk processor Leeb Biomilch in April to expand its goat’s and sheep’s milk offer.

In 2018, Quillayes generated sales of some CLP 50,000 million ($70.7 million) while Surlat recorded net sales of around CLP 70,000 million in 2018 ( $101 million). As a result of the move, Emmi’s sales in Chile are expected to rise to approximately $171.7 million.

Emmi CEO Urs Riedener said: “The merger strengthens Emmi’s presence in Chile, reinforces our involvement in Latin America and opens up new potential.”

According to Emmi, the economic situation in Chile is stable in comparison with other Latin American countries.