Lat Bri is Italy’s third-largest producer of fresh cheeses in Italy, and Granarolo said the transaction would immediately double its own cheese export sales.
The purchase price will basically pay Lat Bri’s debts of around €60m, Granarolo said, and included all the group’s fresh dairy production and marketing facilities.
A spokeswoman for the Italian giant told DairyReporter.com: “The exact amount of the transaction has not been disclosed, but substantially that [figure] is correct. Granarolo paid a sum that corresponds more or less to Lat Bri’s indebtedness (in the range of €60m).”
Granarolo, which had a turnover of €884.3m in 2010, said the purchase would enable it to, “increase its presence in the field of fresh cheeses, and the range of products offered to the market”.
Strengthen sales abroad
Lat Bri’s business had the potential to generate a turnover of around €150m a year, more than doubling Granarola’s cheese turnover to above €300m, the latter said. Granarola's cheese turnover was €160m in 2010.
A “significant share of exports” (approximately €40m) would also allow Granarolo to increase its presence abroad via Lat Bri’s strong retail presence and extra product lines, it added.
Granarolo also welcomed “recent and important investments” at Lat Bri’s factory in Usmate Velate, near Monza, that it said ensured high production standards.
The 30,000 sq ft factory produced around 40,000 tonnes of cheese products a year, Granarolo said, mainly via production of fresh mozzarella, ricotta and mascarpone cheese.
In purchasing Lat Bri, Granarolo said it was pursuing its growth strategy announced to investors in the spring.
More acquisitions planned?
At the time, the company said it was targetting acquisitions both in Italy and abroad, after a period of organic growth where it had successfully launched innovative and products with partners.
Gianpiero Calzolari, president of Granarolo said: "The acquisition of Lat Bri is a strong strategic importance, because it lays the foundation for further developments in the dairy sector in Italy and makes Granarolo the second national operator within this sector and the first [that is] wholly Italian owned.”
“Abroad, we will develop synergies bringing products made in Italy for European consumers, especially in Northern Europe where Lat Bri has long had a widespread market presence. "
Granarolo Group employs around 2,000 staff and comprises a milk producers consortium, Granlatte, and a listed company Granarolo, which processes and sells finished dairy products.
Granarolo has 5 manufacturing sites in Italy, and is the largest fresh milk producer in the country. With the acquisition of Yomo in 2004, it became the largest Italian yogurt manufacturer.