Ehrmann and FrieslandCampina have signed an agreement for the acquisition by Ehrmann of FrieslandCampina's Russian subsidiary Campina LLC.
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Ehrmann will take over the dairy production in Stupino in the Moscow region. Pic: FrieslandCampina

Both companies hold strong positions in different segments of the Russian dairy market. The strategic transaction accelerates Ehrmann’s position in Russia and allows FrieslandCampina to focus on consumer markets elsewhere.

After completion of the transaction, Ehrmann will own 100% of Campina LLC with its 650 employees, including all assets and contractual obligations. Ehrmann will manage the dairy production in Stupino (Moscow region), and develop the established brands Fruttis and Nezhny.

Christian Ehrmann, CEO Ehrmann SE, said, “This acquisition reflects Ehrmann’s strategy of growing its market share in Russia with locally produced, strong brands.”​

Roel van Neerbos, president FrieslandCampina Food & Beverage, said, “This divesture is part of FrieslandCampina’s previously announced strategy to review its position in various markets. Under Ehrmann’s umbrella, our Russian consumer dairy business will be able to further develop and realize its full growth potential.”​

The agreement is subject to approval of the Federal Antimonopoly Service of the Russian Federation, as well as authorities in Kazakhstan, Uzbekistan and Belarus. Closing of the transaction is expected by the end of June, 2021.

Dairy products and, in particular, grass-fed products are performing strongly post-covid in overseas markets.

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