Arla Foods Increases Focus on Finland
The move in Finland involves Arla Foods acquiring 30% of the shares in Ingman Foods Oy Ab. As a result, Arla’s current company in Finland, Oy Arla Foods Ab, will form a new joint company, Arla Ingman Oy Ab.
09/11/06 Arla Foods acquires 30% of the shares in the Finnish dairy company Ingman Foods Oy Ab, with the option to buy the remaining 70%. The move represents a long-term involvement in Finnish milk production and is part of the Group's ongoing development of the Nordic dairy market.
"The international consolidation of the dairy industry is steadily continuing and new types of partnership are needed in order to meet consumers’ and the retail trade's demand for broader ranges and greater choice," says Hans-Åke Hammarström, Head of Nordic markets, Arla Foods. ”We also have to consider the milk producers' need for stable sales of their milk."
The move in Finland involves Arla Foods acquiring 30% of the shares in Ingman Foods Oy Ab. As a result, Arla’s current company in Finland, Oy Arla Foods Ab, will form a new joint company, Arla Ingman Oy Ab, with Ingman Foods Oy Ab. Over the next three years, Arla Foods will be entitled to purchase the remaining 70% of Ingman's shares. The reason behind the deal is to safeguard operations, ensure the continued commitment of employees and maintain continuity in relation to customers, the trade and the milk suppliers. The Ingman Ice Cream business is not included in the deal.
"The two companies complement each other well," said Managing Director Robert Ingman, Ingman Foods Oy Ab, who will also take the top job in the new organisation. “With the great diversity of its range and global product development Arla can now contribute to the further development of dairy products from Finnish milk. Arla has shown a clear, long-term commitment and this has been very important to us in this deal."
Satu Raiski, Oy Arla Foods Ab’s Managing Director, will be part of the new company's management. Arla Ingman Oy Ab will have a turnover of 300 million euros and employ around 500 people. The deal must be approved by the EU authorities.
