January 29, 2018

Emmi increases stake in Tunisian dairy company

Kaiku, a subsidiary of Swiss milk processor Emmi in San Sebastián, Spain, is increasing its stake in Centrale Laitière de Mahdia SA (Vitalait), which is based in Mahdia, Tunisia.

Kaiku will raise the stake from 45.4 % to 54.7 %.

Emmi has held a stake in the Kaiku Group since 2006, with the latter holding a stake in Centrale Laitière de Mahdia SA since 2012. The Tunisian company sells its products under the Vitalait brand. Kaiku's other main markets are Spain and Chile.

Emmi and the other shareholders of Kaiku have decided to raise their stake in Vitalait in two steps of 9.34% increments: initially, from 45.4 % to 54.7 %; then later to 64.0 %.

As a result, Emmi, which holds 73.4 % of shares in Kaiku, will have a 40.2 % stake in Centrale Laitière de Mahdia SA after the first step. The second step, due in the first half of 2021, would boost Emmi's stake to 47.1 %.

Vitalait is the number two dairy brand in Tunisia. The company has grown steadily in recent years as it improved its portfolio. Aside from drinking milk, it currently also produces yogurt, yogurt drinks and desserts.

The increase in stake underlines Emmi's and Kaiku's commitment to the growing Tunisian market. The transactions will not affect Emmi's EBIT or sales as Vitalait is already fully consolidated.

The parties have agreed not to disclose the purchase price or any other details of the contract. The transaction is subject to the approval of the Tunisian authorities.

Strengthening its international presence is part of Emmi's strategy. Tunisia plays an important role in this as the company's fourth-largest international market.