Arla Foods to acquire Falbygdens Ost

Sweden-based food cooperative Arla Foods is acquiring cheese company Falbygdens Ost from Atria Scandinavia for an undisclosed amount.

Subject to approval from the Swedish Competition Authority, the acquisition is part of Arla’s strategy to give a boost to its cheese segment.

Based in Falköping, Falbygdens Ost matures and processes cheese by flavouring and packaging.

It buys its cheese from other producers and employs around 100 people.

The company recorded sales of around $65.68m (Skr470m).

Arla Foods executive vice-president Henri de Sauvage said: "Falbygdens Ost is a strategic complement to Arla’s own cheese business. The decision to acquire Falbygdens Ost is in line with Arla’s strategy, both globally and in Sweden, to drive its premium cheese segment. Through its acquisition, Arla is further securing that it is adding value to its farmer-owner milk and this it continues to be profitable."

Arla is expected to complete the acquisition of Falbygdens Ost by early January 2015, following a decision from the Swedish Competition Authority.

"Employees at Falbygdens Ost have considerable experience in working with cheese, along with strong channels for sales of premium cheese. They represent a proud cheese-making tradition that we now wish to build upon," Sauvage added.

"Falbygdens Ost has a solid foundation in its brands and its partnerships with well-known cheese producers in other countries. With Arla’s expertise in innovation and production, along with its marketing and sales channels, we can work together to develop the passion for and interest in cheese of both customers and consumers."

Atria Scandinavia is part of the listed Finnish group Atria Abp.

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Image: Cheese company Falbygdens Ost will be acquired by Arla Foods for an undisclosed amount. Photo: courtesy of Arla Foods.