FrieslandCampina Sells Romanian Ice Cream Business to Unilever
The sale includes the brand Napoca and the transfer of the staff serving the ice cream business. FrieslandCampina Romania will continue to manufacture the ice cream products for Unilever Romania at their Napolact plant in Cluj Napoca.
25/02/09 FrieslandCampina Romania have agreed terms to sell the ice cream business under the Napoca brand to Unilever by the end of spring 2009 for an undisclosed amount. The acquisition is subject to approval from the Romanian Competition Council, a procedure which is expected to be finalised within the next three to four months.
The sale includes the brand Napoca and the transfer of the staff serving the ice cream business. FrieslandCampina Romania will continue to manufacture the ice cream products for Unilever Romania at their Napolact plant in Cluj Napoca.
Ian Gearing, Managing Director of FrieslandCampina Romania, described the agreement as: “Good for all.” He said: “We are pleased to sell a non core asset to allow local management to concentrate on our local dairy portfolio. It was important to give job security to staff, who have built the brand and it goes without saying that the business could not be in better hands than Unilevers as a global leader in ice cream.”
The acquisition came as part of a newly announced growth strategy in South Central Europe for Unilever, which is launching an ice cream business in Romania. For the first time, some of the best-selling global ice cream brands, including Magnum and Carte d'Or, will be widely available throughout the country.
In addition to Magnum and Carte d'Or, the product portfolio will include Cornetto, Vienetta and Big Milk as well as Napoca brands, once the acquisition is completed. Unilever will market its ice cream products under the Algida name, the trademark used in Italy, the country which many Europeans regard as the home of top quality ice cream. Unilever has already been in talks with a number of retailers, and plans to begin deliveries in March.
"Ice cream is an important part of our global business, and we now believe the time is right to develop this business in Romania where the market size is estimated at €160 million," said Alexandra Gatej, Chairman of Unilever South Central Europe. "This is a country that values its ice cream, and I am delighted we will be now able to offer Romanians a range of high quality products at affordable prices for all consumers."
"The increase in the demand for quality products across all parts of the consumer business makes the ice cream segment extremely attractive," added Gatej. "It is an area where we have a great deal of experience and expertise in product innovation as well as product sales, and it will be a valuable addition to our existing businesses. This decision, an important long-term investment for us, underlines our continuing commitment to this region."
