Granarolo Buys the Italian Dairy Firm Lat Bri

It is envisaged that Granarolo’s management of Lat Bri business activities could generate turnover of about EUR 150 million per year, thus doubling the cheese segment of Granarolo’s turnover.

Sep 6 2011 --- Granarolo has announced the purchase of the Italian dairy firm Lat Bri, the third largest producer of fresh cheese in Italy.

The operation, which pays substantially for the debt position of the company, which stands at around EUR 60 million (a figure which will be confirmed at the end of the transitional period of the business unit lease), consists of the purchase by Granarolo of all the business relating to the production and distribution of Lat Bri fresh dairy products and enables the Group to increase its presence in the fresh cheese sector and the range of products it markets.

It is envisaged that Granarolo’s management of Lat Bri business activities could generate turnover of about EUR 150 million per year, thus doubling the cheese segment of Granarolo’s turnover, which would then exceed EUR 300 million (it was EUR 160 million in 2010). In terms of margins, there are several synergies to be obtained through the integration of the firm into the Granarolo group.

Similarly, the purchase of Lat Bri will bring in a significant level of exports (equal to about EUR 40 million) which will enable Granarolo to obtain significant growth in its overseas presence, benefiting from the strong presence of Lat Bri in the mass retail market and integration with new production lines which will widen the Group’s range of offers abroad.

Granarolo can also count on the technologically advanced industrial structure of Lat Bri; the production unit at Usmate Velate (Monza) has in fact recently been the subject of large investments capable of ensuring very high production standards. In its 30,000 square metres unit Lat Bri can process about 40,000 tons of products, mainly mozzarella, ricotta, mascarpone and similar fresh cheeses.

The operation forms part of the growth strategy of the Group, presented last spring to the financial community.

The Granarolo Group’s strategy is aimed at achieving growth – as the strategic factor for retaining its strong competitive position in the milk/dairy industry by means of:
o targeted purchases in Italy and abroad; made possible by the positive financial situation of the firm
o organic growth thanks also to the launching of products identified by internal research into innovative areas with high added value
o partnerships with operators sharing the common aim of businesses based on value-creation

“The purchase of Lat Bri is strategically very important”, emphasised Gianpiero Calzolari, Chairman of the Group, “because it establishes a solid basis for further developments in the dairy industry in Italy and makes Granarolo the second largest national operator in this sector and the first in terms of Italian capital. Abroad, we are developing important synergies in bringing Made in Italy products to European consumers, especially in Northern Europe where Lat Bri has had a far-reaching market presence”.