Emmi sells Spanish goat’s cheese producer

As part of its focus on a growth and margin delivering international business, Emmi is selling its majority stake in Spanish company Lácteos Caprinos, which specialises in the production of goat’s milk products. With roughly 40 full-time-employees, it generates annual sales of around EUR 10 million.

After careful examination of various options and beyond economic considerations, the decision was mainly based on adjustments to Emmi’s Europe-wide goat’s milk procurement strategy. However, the consistent expansion of the niche with goat’s milk products remains strategically important for Emmi.

The new owner, Lácteas García Baquero S.A., has a long history and extensive expertise in the cheese business and a complementary product portfolio and distribution network. As part of the transaction, all employees will be taken over and the business will continue under the Lácteos Caprinos brand. The parties have agreed not to disclose the purchase price.

The sale will result in a one-off charge of around CHF 15 million to EBIT in the 2020 financial year for Emmi. The majority of this loss is attributable to the “goodwill recycling” principle required by Swiss GAAP FER. This principle requires to include Goodwill, which has been set off against equity at the date of acquisition, in the calculation of the profit or loss from the sale. The transaction has only a minor impact on Emmi’s cash and cash equivalents.

 

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