M&As: Savencia acquires Ilolay, Fonterra completes Soprole divestment

Savencia Fromage & Dairy has acquired Sucesores de Alfredo Williner, owner of the Ilolay dairy brand and one of the main milk collectors in Argentina. The deal makes Savencia the third largest milk processor in Argentina, behind Saputo and Mastellone.

Ilolay products, from fresh milk and dulce de leche to yogurts, cream, butter and puddings, are household staples in Argentina and are produced in Williner’s three factories based in Santa Fe.

For Savencia, adding Ilolay to its brand portfolio, which already includes Milkaut, Santa Rosa and Adler, makes it the third largest milk processor on the Argentinian market.

This operation shall be subject to the approval of the antitrust authorities in accordance with local regulations.

In Chile, Fonterra has completed the sale of Soprole to Peru’s Gloria Foods in accordance with the terms announced in November 2022. The divestment comprised the sale of shares in the Fonterra-owned holding company.

The transaction, which was completed on March 31, 2023, was subject to a number of conditions, including receipt of regulatory approvals and commencement of an irrevocable public tender offer process for the outstanding shares not owned by the New Zealand dairy co-op, which have been satisfied.

According to Fonterra CEO Miles Hurell, the divestment is ‘a significant milestone’ for the co-op, which is selling its overseas assets to focus on New Zealand milk. The deal, valued at around NZ$1.05bn (US$644m), will reduce the co-op's debt and return around NZ$0.50 per share and unit, or around NZ$800m (US$502m), to Fonterra farmer owners and unit holders.

 “We remain on track for a record date for the proposed capital return in late September 2023, with cash to be received by our farmer owners and unit holders the following month,” Hurrell said.