The transaction also includes the sale of all shares in the French cheese processor Martin Sengelé Produits Laitiers at Muhlbach-sur-Munster to Vache Bleue.
Martin Sengelé Produits Laitiers, which has an annual capacity of 14,000 tons, is a wholly owned subsidiary of Arla Foods and is responsible, among other things, for the packaging of the cheese specialties produced in Bad Wörishofen, which are mainly distributed in France.
Arla Foods said it decided to take this step as production and distribution of the cheese specialties produced in Bad Wörishofen no longer meet the requirements of the strategic orientation of Arla in Germany and Europe. The German site primarily produces Emmental block cheese and organic Emmentaler.
With Vache Bleue, Arla Foods said it has found a buyer who will continue the current work at Bad Wörishofen: all 73 employees from production and administration will continue to be employed by Vache Bleue.
Similarly, at Martin Sengelé Produits Laitiers, which has 50 employees, Vache Bleue said it will continue with the existing employees.
Martin Sengelé Produits Laitiers works with grated cheese, sliced cheese and portions of Emmentaler and mozzarella.
Arla Foods has agreed with the Allgäu milk supply groups that the existing milk production will be transferred from Arla Foods to Vache Bleue. In addition, it is anticipated that Vache Bleue will continue to produce cheese products for Arla for the time being for Arla to meet the current supply contracts with its end customers.
In spring 2018, Arla Foods sold its Allgäu plant in Sonthofen to Allgäuer Hof-Milch.
The transfer of the facility to Vache Bleue should be completed by the end of the first quarter of 2019.