FrieslandCampina sells Creamy Creation to Dutch investment business as dairy company focuses on nutrition
24 Apr 2019 --- Royal FrieslandCampina is to sell its cream liqueur manufacturing business in Rijkevoort to Dutch investment company Wagram Equity Partners. The deal is subject to the usual conditions, including the required regulatory approvals and is likely to be completed in the last quarter of this year, according to FrieslandCampina. The divestment reflects FrieslandCampina’s desire to focus more on nutritional and functional solutions with its dairy offerings.
Creamy Creation was founded in 1979. It offers emulsified alcoholic drinks with dairy, soy or coconut bases, as well as nutritional beverages through its partner O-AT-KA. According to the announcement, the transaction includes the production of cream liqueurs in Rijkevoort and sales office in Paramus, US.
FrieslandCampina is seeking to focus more on nutritional and functional solutions with its Ingredients business. It was also agreed between parties that Wagram would start producing canned cream for FrieslandCampina in Rijkevoort. Upon completion of the deal, Creamy Creation will continue to produce and sell cream liqueurs.
Wagram Equity Partners is an independent Dutch investment company with a long-term perspective. Its business is making investments in private companies through controlling ownership positions. Wagram will focus on the long-term growth of Creamy Creation, says FrieslandCampina.
Wagram Equity Partners has accrued an investment portfolio of €200 million (US$224 million) since it was founded in 1996.
In September 2018, FrieslandCampina announced its plans to invest €23 million (US$26 million) in an evaporated milk and ready-to-drink (RTD) milk plant in Nigeria, as part of its Dairy Development Programme (DDP).
Last month, it was reported that FrieslandCampina was exploring options to build a sustainable dairy processing plant in the Netherlands. The plant is intended for the processing of milk into fresh dairy products, ingredients used for the production of early life and adult nutrition and cheese manufacturing. It would be built according to the latest insights in the area of technology and sustainability, according to the company.
