25 August - Arla Foods acquires the remaining 70 per cent of the shares in Finnish company, which now becomes a fully owned subsidiary. Arla Foods continues its commitment in Finland, for example by developing the local operations in combination with highly value-added products.
A year and a half ago, Arla Foods acquired 30 per cent of the shares in Finland's second largest dairy company, the privately owned company Ingman Foods, with an option to acquire the remaining part in three years. Arla Foods acquires the rest of the shares and Arla Ingman becomes a fully owned subsidiary as of 28 August.
"We have used the time to get to know the Finnish market better, and strengthen our contacts with the Finnish milk producers. Now we take the final step in this deal," says Hans-Åke Hammarström, head of Arla Foods' Nordic operations.
The acquisition has been planed for a long time, and by dividing it in two parts, Arla Foods has been able to establish itself gradually on the Finnish market. This has increased the awareness among milk farmers, customers and consumers that Arla Foods is a local company. Now the discussions continue with Aral Ingmans cooperating dairies and local farmers about an even stronger collaboration in the future. Today, it is not clear how this collaboration will be drawn up in detail.
"It could be the same type of collaboration that we have today, or some kind of part-ownership, like the model we have in the UK. But that is a decision for the Finnish farmers. Arla Foods wants to keep the milk we have today, but also get more milk in order to increase the base for our activities in Finland," adds Hans-Åke Hammarström.
Robert Ingman, Managing Director of Arla Ingman, believes strongly in the combination of local support and top quality import products from Sweden and Denmark.
"Everything has gone according to plans, and now we can concentrate fully on becoming number two in Finland with our large product portfolio. It feels good to be a part of Arla Foods' Nordic organisation. Arla Foods is a big and strong company that provides our employees with many opportunities for development," says Robert Ingman.
The acquisition of the remaining shares is not expected to bring about any structural or staff changes in Finland.
Arla Ingman in Finland
* Arla Ingman has an approx. 20 per cent share of the Finnish market for dairy products. Valio is the market leader.
* The main office is in Sibbo near Helsinki.
* 43 per cent of the production is centred at six dairies owned by Arla Ingman. 57 per cent of the production takes place at dairies under contract with Arla Ingman.
* Approx. 1,300 dairy farmers supply Arla Ingman.
* 20 per cent of weighed in milk is supplied by milk producers under direct contract with Arla Ingman. 50 per cent of the farmers are members of a dairy association or a dairy company under contract with Arla Ingman. 30 per cent of all the milk is bought from Valio.
* The most profitable products are yoghurt, lactose-free products and cheese from Denmark and Sweden.