Emmi Group sells German organic dairy company to Mutares
06 Jul 2023 --- The Emmi Group is divesting from its German subsidiary, the Gläserne Molkerei, to Mutares, a “turnaround specialist.” The deal is part of Emmi’s strategy to focus on its core markets and niches, such as ready-to-drink coffee, specialty cheeses, premium chilled desserts and plant-based dairy alternatives.
Emmi acquired a majority stake in the Gläserne Molkerei in 2012 and increased it to 100% in 2014.
The Gläserne Molkerei is a producer of regional organic dairy products in northeast Germany. It has two production sites in Münchehofe and Dechow and employs over 120 people. In 2022, it generated sales of around €100 million (US$108.63 million).
The transaction is subject to approval by the relevant competition authorities. The parties did not disclose the purchase price.
“The new ownership structure creates sustainable future prospects for the Gläserne Molkerei with its high-quality range of organic dairy products and enables Emmi to continue to implement its strategy of focus,” says Ricarda Demarmels, CEO of the Emmi Group.
Turnaround: “Road to success”
Mutares, based in Munich, acquires and restructures underperforming businesses. The business has a portfolio of 19 companies across various sectors and regions. Mutares says it sees potential in Gläserne Molkerei’s strong brand recognition and loyal customer base.
“Mutares has a track record of putting companies back on the road to success,” according to the Emmi Group.
The company further details the sale will result in a one-off loss of around CHF30 million (US$33.43 million) at a net profit level for 2023. This is mainly due to the accounting principle of “goodwill recycling,” which requires the goodwill offset against equity at the time of acquisition to be considered when determining the profit from the sale.
The negative cash impact of the transaction amounts to around CHF10 million (US$11.14 million).
Emmi will report its half-year results on August 18, 2023.
One year ago, Emmi revealed it was selling its 25% stake in Italian cheese specialist Ambrosi as part of the ongoing portfolio transformation and the strategic focus on clearly defined, profitable growth segments.
Other companies like IFF are following similar divestment strategies. IFF sold its Flavor Specialty Ingredients Business to Exponent in a US$220 million deal in 2022, with the transaction expected to be finalized in Q3.
Edited by Marc Cervera
