Chile-based Surlat to merge with cheese maker Quillayes

Chile-based company Surlat has agreed to merge with competitor Quillayes to form Quillayes Surlat.

Emmi’s Spanish subsidiary Kaiku Group has a majority stake of 51.5% in Surlat.

Emmi CEO Urs Riedener said: “The merger strengthens Emmi’s presence in Chile, reinforces our involvement in Latin America and opens up new potential.”

With two facilities located in Victoria, Southern Chile, and Calera de Tango, near Santiago, Quillayes is engaged in the production of cheese, yoghurt, butter and cream products.

It has established its footprint in the cheese market, especially in the fresh, soft and speciality cheeses sectors.

Additionally, Quillayes is engaged in the distribution of imported branded goods.

Surlat operates in key segments that include UHT milk and other dairy products, with a special focus on lactose-free products.

The deal is said to be part of Emmi’s strategy to strengthen its international presence, and the move is expected to increase Emmi’s sales in Chile to nearly Sfr170m ($171m).

Financial details of the transaction have not been disclosed.

Completion of the deal is subject to approval from local competition authorities.

Once the deal is completed, Emmi, which currently holds a 73.5% stake in Kaiku, will have a 37.8 % stake in Quillayes Surlat.

In June, Emmi strengthened its footprint in the South American market by increasing its stake in Brazilian dairy company Laticínios Porto Alegre from 40% to 70%.

Emmi, through its holding in Mexican company Mexideli, has a significant presence in the Mexican market.