Emmi to acquire minority stake in Spanish firm Kaiku
Plan to market, sell and distribute innovative fresh products in Spain and Latin America.
16/12/05 Emmi and Kaiku, Spain's No. 2 in the areas of functional food and lifestyle, have concluded an agreement to co-operate in the area of fresh dairy products. With this aim in mind Emmi will acquire a minority stake in Kaiku, the plan being to market, sell and distribute innovative fresh products in Spain and Latin America.
In line with its international strategy, Emmi has taken a further step in the development and expansion of international distribution in its key markets. The agreement means that Emmi and Kaiku will jointly sell and market innovative fresh products. With this co-operation, both partners will strengthen their positions in the international market with innovative products such as Benecol, Evolus, Caffè Latte and other functional food concepts. Kaiku is the No. 2 in the premium segment of fresh dairy products in Spain. The company has subsidiaries in Brazil, Mexico and Chile, and aims to gradually expand its Latin American business.
The two partners have signed a letter of intent, with Emmi planning to acquire a minority stake in Kaiku that will make it the largest individual shareholder beside the Spanish company Iparlat and enable it to join Kaiku's Board of Directors and operational management. The parties have decided not to disclose any details.
Kaiku Corporación Alimentaria is headquartered in San Sebastián (Spain) and is No. 2 in the premium segment of the Spanish milk-processing industry. In the 2004 financial year, Kaiku employed a staff of around 150 and posted sales of CHF 226 million (EUR 146 million). The company's business activities focus on classic milk products and on the production and marketing of innovative fresh products and functional food. Iparlat holds a 20% stake in the company, while most of the remaining shareholders are regional banking institutions, agricultural cooperatives and financial investors.
