Emmi sells Spanish goat cheese company

By Jim Cornall contact

- Last updated on GMT

The sale will result in a one-off charge of around CHF 15m ($16.9m) to EBIT in the 2020 financial year for Emmi. Pic: Emmi
The sale will result in a one-off charge of around CHF 15m ($16.9m) to EBIT in the 2020 financial year for Emmi. Pic: Emmi

Related tags: Emmi, goat milk, Goat, goat's milk

As part of its focus on a growth and margin delivering international business, Swiss dairy company Emmi is selling its 80% majority stake in Spanish company Lácteos Caprinos S.A., which specializes in the production of goat’s milk products, to Lácteas García Baquero S.A.

With roughly 40 full-time-employees, Lácteos Caprinos generates annual sales of around €10m ($12.2m).

After examining various options, beyond purely economic considerations, Emmi said the decision was based on adjustments to its Europe-wide goat’s milk procurement strategy. However, Emmi said, the consistent expansion of the goat’s milk products nice remains strategically important.

The new owner, Lácteas García Baquero S.A., has a long history and extensive expertise in the cheese business and a complementary product portfolio and distribution network. As part of the transaction, all employees will be taken over and the business will continue under the Lácteos Caprinos brand. The parties have agreed not to disclose the purchase price.

The sale will result in a one-off charge of around CHF 15m ($16.9m) to EBIT in the 2020 financial year for Emmi. The majority of this loss is attributable to the “goodwill recycling” principle required by Swiss GAAP FER. This principle requires to include Goodwill, which has been set off against equity at the date of acquisition, in the calculation of the profit or loss from the sale. The transaction has only a minor impact on Emmi’s cash and cash equivalents.

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Products

View more

Webinars