Newlat Group has signed a binding agreement for the purchase of a 46.24% share in dairy company Centrale del Latte d’Italia (CLI).
The agreement to purchase 6.47 million ordinary shares of CLI was signed with a group of shareholders, including Finanziaria Centrale del Latte di Torino, Lavia – Società Semplice, Luigi Luzzati, Marco Fausto Luzzati, Carla Luzzati and Sylvia Loew.
Newlat Group, which already owns a 1.34% stake in CLI, will launch a mandatory takeover bid on the remaining CLI shares at the price of €1.
The sellers will re-invest the proceeds from the sale to become shareholders of Newlat Group subsidiary Newlat Food.
Dairy Products
CLI produces and markets about 120 different products, ranging from milk and its derivatives to yoghurt and plant-based beverages, under brands such as TappoRosso, Mukki, Tigullio and Vicenza, to over 16,000 retail outlets.
The transaction will lead to further consolidation of the Italian dairy market, with the creation of the third biggest player in the sector, with a turnover of around €500 million.
Synergies will result in substantial efficiencies in the short-term, including the boosting of regional supply chains in Piedmont and Tuscany in particular.
The acquisition is line with Newlat Group’s external growth and capital employment strategy, which was announced during last October’s IPO.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
