FrieslandCampina to acquire controlling stake in Alaska Milk

Dutch dairy cooperative Royal FrieslandCampina has announced plans to pay about $400m to acquire the remaining shares in Philippine dairy company Alaska Milk to strengthen its presence in Asia.

FrieslandCampina will increase its stake from 8.1% to 68.9% by purchasing 535.7 million shares for $302m held by the Uytengsu Family, the founders and controlling shareholders of Alaska Milk, for PHP24 ($0.56) per share.

To comply with regulatory requirements, FrieslandCampina will launch a tender offer for the remaining 276.7 million outstanding shares in AMC at an identical price, which would result in the deal size of about $400m.

Following the transaction, AMC president and CEO Wilfred Steven Uytengsu will continue to lead the firm’s management team.

FrieslandCampina is already present in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore, and the deal will provide the company with access to the Philippine market of around 100 million customers and boost its revenues by 8% to €2.7bn.

Royal FrieslandCampina CEO Cees ‘t Hart said that Alaska Milk’s management has already built up an outstanding position in the Philippine market.

"Together we can expand this position by introducing tried and tested FrieslandCampina concepts that have been successful in other parts of the world," Hart added.

The transaction, which will be funded through FrieslandCampina’s internal resources, is expected to close around May 2012.

Alaska Milk, which produces canned milk, powdered milk, and ready-to-drink milk, has annual revenues of €200m with a production facility in San Pedro, Laguna.

FrieslandCampina was advised by JP Morgan over the deal, while the AMC’s founding family was advised by a domestic Philippine advisor Houlihan Lokey.

Image: Royal FrieslandCampina’s deal to acquire the controlling stake in Alaska Milk is expected to boost its revenues by 8% to €2.7bn. Photo: FrieslandCampina.