August 30, 2019
Emmi bolsters Latin American business with merger
Surlat, an existing Emmi dairy company in Chile, is merging with competitor Quillayes to form Quillayes Surlat, Emmi announced.
The newly founded company will be the number four in the Chilean dairy market. Emmi subsidiary Kaiku will hold a majority stake of 51.5 %. The acquisition is subject to approval by the local competition authorities.
Strengthening its international presence is a key pillar of Emmi's strategy. Some of the Swiss milk processor's desired growth will be achieved in growth markets, such as Latin America.
Through its holding in Mexican company Mexideli and the recent increase in its stake in Brazilian company Laticínios Porto Alegre Indústria e Comércio S.A., Emmi already has notable positions in these markets.
Emmi is also present in the Chilean market in the form of local company Surlat, through its majority stake in Spain's Kaiku Group. Agreements have now been signed as of August 29 to merge Surlat and Quillayes.
Kaiku will hold a majority stake of 51.5 % in Quillayes Surlat. As a result, Emmi, which holds 73.5 % of the shares in Kaiku, will have a 37.8 % stake in Quillayes Surlat.
Quillayes produces cheese, yogurt, butter and cream in Victoria (southern Chile) and Calera de Tango (close to Santiago). It has developed a solid market position, especially in the cheese market, and particularly with fresh and soft cheese and speciality cheeses, but is also well established in other segments and in distributing imported branded goods.
Surlat's key segments are UHT milk and other dairy products, particularly in the lactose-free area.
The merger will take Emmi's sales in Chile to approximately CHF170 million (US$172 million).
"The merger strengthens Emmi's presence in Chile, reinforces our involvement in Latin America and opens up new potential," said Emmi CEO Urs Riedener.