Royal FrieslandCampina acquires controlling stake in Alaska Milk

Dutch dairy cooperative Royal FrieslandCampina has completed the acquisition of a controlling stake in Alaska Milk, a leading dairy company in the Philippines, for €227m.

Earlier this month, the company announced that it was planning to increase its stake from 8.1% to 68.9%, as part of its strategy to strengthen its presence in Asia.

The company purchased 535.7 million shares held by the Uytengsu Family, the founders and controlling shareholders of Alaska Milk, at PHP24 ($0.56) per share.

Royal FrieslandCampina CEO Cees ‘t Hart said the company has closed the acquisition of the 60.7% stake in Alaska Milk.

"Today we are jointly entering a new phase of business growth in the Philippines," Hart said.

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

Alaska Milk will be incorporated into FrieslandCampina’s Consumer Products International business group, which produces and sells dairy products in the Middle East and Africa, and its president and CEO Wilfred Steven Uytengsu will continue to lead the management team.

FrieslandCampina is already present in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore, and the deal provides the company with access to the Philippine market, boosting its annual revenues by 8% to €2.7bn.

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: With the acquisition of a controlling stake in Alaska Milk, Royal FrieslandCampina gains access to the Philippine market and expects its annual revenues to go up 8% to €2.7bn. Photo: Royal FrieslandCampina