Arla Foods Ingredients acquires AFISA stake in South America

Arla Foods Ingredients has agreed to acquire the shares in Arla Foods Ingredients SA (AFISA) from Argentinian dairy cooperative SanCor to support the company’s market growth in the South American region.

Arla Foods Ingredients Group is a subsidiary of global dairy cooperative Arla Foods that produces whey-based ingredients used for a wide range of products such as infant nutrition, baking, dairy, medical applications, and sports nutrition.

Financial details of the transaction have not been disclosed by either of the companies.

Arla Foods Ingredients senior vice-president Henrik Andersen said: “Arla Foods Ingredients greatly appreciates the collaboration with SanCor for the last 17 years.

“SanCor and Arla Foods Ingredients have agreed amicably that it is now time to move forward with our businesses separately.

“For Arla Foods Ingredients this is a unique opportunity for continued strategic growth in our whey business in general and specifically in South America, and AFISA will become a significant element in Arla Foods Ingredients’ global supply chain.”

As part of the company’s restructuring plans, the members of the Argentinian dairy cooperative have agreed to sell their 50% stake in AFISA.

Jointly established by Arla Foods Ingredients and SanCor in 2001, AFISA processes nearly 900 million kilos of whey every year at its site in the Argentinian province of Cordoba.