Emmi Acquires US Cheese Specialist Cypress Grove Chèvre

As the leading supplier of Swiss cheese and fresh dairy products, Emmi plans to continue its growth, focusing in particular on the Italian, German, Austrian, UK and US markets.

Aug 23 2010 --- Emmi has acquired the US cheese specialist Cypress Grove Chèvre based in Arcata, California, thereby strengthening its market position in the US cheese industry. Cypress Grove is a renowned producer and the best-known brand in the US for fresh and ripened premium goat's cheese specialties. Emmi has also increased its stake in CASP (Contract Aseptic & Specialty Packaging) LLC in Penn Yan, New York, to 100%. CASP specialises in contract manufacturing of aseptic milk products and forms an important pillar in Emmi's fresh products business in the US.

As the leading supplier of Swiss cheese and fresh dairy products, Emmi plans to continue its growth, focusing in particular on the Italian, German, Austrian, UK and US markets. The acquisition of Cypress Grove Chèvre with effect from 19 August 2010 (PST) or 20 August 2010 (CET) is an important step in this direction. The company is based in Arcata, California, and is a leading US manufacturer of fresh and ripened goat's cheese specialties in the premium segment. Since its inception in 1983, Cypress Grove cheeses have won numerous awards at international trade fairs and competitions. Cypress Grove Chèvre employs 45 people and has a turnover of approx. USD 10 million. The company's founder, Mary Keehn, is looking forward to working with Emmi: "Emmi is the ideal partner for Cypress Grove. The synergies in marketing cheese specialties from Switzerland and the US will help to strengthen the presence of the Cypress Grove Chèvre brand and further develop our site in Arcata."

Urs Riedener, CEO of Emmi, on the acquisition: "Cypress Grove Chèvre's premium cheese specialties will be an ideal complement to our US product range. The expanded product line will allow us to strengthen our position in our largest foreign market, the US."

The US cheese market is around USD 16.4 billion, with the fast-growing speciality cheese segment - in which goat's cheese plays an increasingly important role - accounts for around USD 1 billion.

One of the products manufactured by the Penn Yan, New York-based company CASP (Contract Aseptic & Specialty Packaging) LLC is the Caffè Latte Emmi sells in the US market. The company employs 23 people and has a turnover of approximately USD 6 million. Thanks to its total acquisition of CASP, Emmi now has its own production facility for fresh products in the US that will manufacture both Emmi Caffè Latte and, in future, the Emmi premium yoghurts already sold in the US market. This will ensure Emmi's high quality standards for the long term and allow it to achieve additional growth.

Emmi can finance the acquisition of Cypress Grove Chèvre and the complete takeover of CASP using current funds and credit lines. The contractual parties have agreed not to disclose details of the purchase price.

CEO Urs Riedener adds: "In 2009, Emmi generated sales of around USD 175 million in the US. The investments in Cypress Grove Chèvre and CASP are important steps to strengthen our position in the US market in line with our international growth strategy."