Lakeland Dairies has today (Friday, March 1) confirmed that it has completed the acquisition of Belgian-based butterfat business De Brandt Dairy International NV.
The cross-border dairy processing co-op said that the move will significantly increase its value add capability.
The financial details of the deal have not been disclosed.
Lakeland Dairies
Based at Dendermonde, approximately 30km north west of Brussels, De Brandt is a family-owned business established over 100 years ago.
Lakeland, which has an annual milk pool of 2 billion litres, has acquired De Brandt’s customer base as well as other key assets of the company’s butterfat business in mainland Europe.
The conclusion of the deal follows detailed negotiations and will further enhance Lakeland’s portfolio of products and geographical reach.
It will also allow the co-op to significantly grow its operational capability in the premium texturised butter market.
Texturised butter offers a technical solution to specialist requirements in the catering and baking industries.
It facilitates the preparation of pastries, improves the expansion of layers during baking and enhances taste and quality in final consumer and foodservice products.
The De Brandt business comprises of texturised butter in addition to conventional butterfats, all of which will now be serviced by Lakeland Dairies.
Prior to the acquisition, Lakeland Dairies and De Brandt built up a relationship over many decades.
This included a direct supply arrangement between the Lakeland’s butter processing facility in Ballyrashane, Co. Derry and De Brandt’s European operations.
Commenting on the deal, Lakeland Dairies chairperson Niall Matthews said that the acquisition is “a real show of strength” by Lakeland.
Matthews added that the move will “open new markets, product categories and opportunities for the co-op to further grow and develop its European business”.
Lakeland Dairies’ Group chief executive Colin Kelly added: “Having experienced a decade of volume growth, the next decade is about strategically increasing our added-value capability to ensure that we are in a position to deliver the strongest possible returns to our farm families.
“This acquisition gives us a firm foothold in new markets in Europe and beyond, enabling us to further grow and develop our world-class product offering for our current long term and future new customers.”