Lactalis Group acquires Ehrmann AG’s US yoghurt business

USA – French dairy corporation, Lactalis Group has acquired Ehrmann Commonwealth Dairy, the U.S. yogurt business of German-based dairy company, Ehrmann AG.

The transaction whose terms were not disclosed was completed on July 5, 2019 and expands Lactalis’ growth strategy in international markets outside its home country.

The Ehrmann Commonwealth Dairy acquisition marks the group’s fourth acquisition in the US in two years.

With the deal, Lactalis ow has 8 factories and over 2,400 employees in the U.S., supporting leading brands like President, Galbani, Parmalat, siggi’s, Stonyfield, Karoun, rondelé, and Black Diamond.

“The Ehrmann acquisition is a terrific complement to our Stonyfield and siggi’s brands in the U.S.,” said Thierry Clement, chief executive officer of Lactalis North America.

“Ehrmann’s Vermont and Arizona plants are the ideal platform to develop our star brands, strengthen national distribution, and secure topflight quality and service for our private label customers.

“The capability we gain with Ehrmann’s two plants, combined with the power of our leading brands, ensures the long-term growth of the Lactalis yogurt business in the U.S., and underlines our commitment and ambition in the category.”

Established in 2009, Ehrmann Commonwealth Dairy has two state-of-the-art manufacturing facilities that employ 250 people in Brattleboro, Vermont and Casa Grande, Arizona and manufactures and distributes yogurt and other dairy products under the Green Mountain Creamery® and Liebe® brands.

Lactalis acquired Stonyfield organic yogurt business from Danone for $875 million in July 2017.

The deal gave Lactalis a strong foothold in the US, including in organic yogurts as well as smoothies, frozen yogurts and packaged milks.

In 2018, the group agreed to acquire US brand of Icelandic-style skyr yogurts Siggi’s.

Recently, the company has ramped up a series of acquisitions including Italian cheese maker Nuova Castelli and Egyptian cheese maker Greenland Group for Food Industries.

In March, it received a regulatory go-ahead to buy out Prabhat Dairy’s subsidiary Sunfresh Agro and its dairy business.

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