Kaiku will subsequently own 85% to 95% of Santiago-based Surlat, up from 60%. As a result, Emmi, which has a 73% stake in Kaiku, will have a 62% to 70% holding in Surlat.
Range of dairy products
Emmi says it is continuing to invest in a company that holds the number two position in lactose-free products and is the leading producer of UHT milk in Chile.
Surlat manufactures dairy products at its facilities in Pitrufquén, and cheese in Loncoche. In addition to basic products, Surlat produces and markets a lactose-free range of products, the “Surlat kids” line, and probiotic products.
‘Surlat will return to growth’
Chile has been affected by a challenging economic environment during the past two years, which inhibited Surlat’s growth, Emmi said.
However, Emmi says it believes that Surlat will return to growth and that the Chilean market harbours good potential.
The positive collaboration with Chilean milk producers will be continued, ensuring the long-term availability of milk, it said.
Emmi’s strategy is to increase the share of its overall sales from international sources from its current 44% to around 50% in the medium term. It says this is to be achieved organically and through acquisitions, with growth markets outside of Europe becoming increasingly important.
Group Surlat, which includes Surlat Industrial S.A., Surlat Comercial S.A. and Sociedad Distribuidora Chile S.A., generates sales of CHF 90m ($91m) per year.
The purchase, the price of which was not revealed, is expected to be completed by the end of August 2016.
The latest deal comes just days after Emmi announced the purchase of Cowgirl Creamery Corporation in California.