Unternehmensgruppe Theo Müller has finalized a deal to acquire a production facility and associated brands from German dairy co-operative Hochwald Foods.
In a statement dated yesterday (19 November), the privately-owned Müller announced that the transaction focuses on Hochwald’s Lüneburg facility, which includes 150 employees.
The Germany-headquartered dairy giant will also acquire all trademark rights and products of the Elinas and Lünebest brands. Importantly, production will continue uninterrupted at the Lüneburg plant.
Müller emphasized that the deal, which requires approval from competition authorities, will strategically “complement” its dairy product portfolio in the German market, where the company primarily operates in the private label sector.
Hochwald acknowledged the transaction, stating that the sale is in line with its strategy to concentrate on its “core” offerings.
The co-operative also observed limited development prospects for the two brands within its own yogurt segment, which is known to be “highly competitive.”
Detlef Latka, CEO of Hochwald Foods, stated, “The planned sale will allow us to use our resources more effectively and further expand our strengths in our core business areas such as drinking milk, condensed milk, quark, cheese, and ingredients for Germany and export, particularly to third countries.”
Hochwald operates production facilities both in Germany and the Netherlands, employing approximately 1,970 people. Its portfolio also includes other brands such as Bärenmarke and Tuffi, along with offerings for private-label customers.
In 2024, the company reported sales revenues of €2.01bn ($2.3bn), marking a 2% increase from the previous year. Notably, EBITDA rose by €22.9m to €161.2m, according to Hochwald’s report in June.
Domestic sales contributed to 59% of turnover, while exports accounted for the remainder.
Interestingly, consumer product exports benefitted from increased volumes to Arab markets, the company reported.
In 2023, Hochwald acquired the Tuffi brand from Müller, following approval from the German regulator Bundeskartellamt. This acquisition followed a ruling that required Müller to divest two brands as a condition for acquiring parts of FrieslandCampina’s German business.
Subsequently, Hochwald also secured the license to produce and sell rice pudding under the Landliebe brand.
Meanwhile, Müller maintains dairy subsidiaries across continental Europe and the UK.
In April, the group strategically entered the UK functional food market by acquiring Biotiful Gut Health, a prominent kefir drinks and yogurts producer.
