NETHERLANDS – Germany’s leading dairy cooperative, DMK Group has agreed to fully acquire the assets of DV Nutrition, a joint venture the company had formed with UK headquartered dairy nutrition company Volac.
The move will see the two companies end their 15-year partnership in the venture. DV Nutrition has been producing whey protein and lactose-based ingredients since 2004.
As of 1 January 2020, the DMK Group is expected to acquire all of the shares in the joint venture, which will then become part of DMK Group’s ‘Industry’ business unit.
Once the transaction is approved by relevant parties, DV Nutrition’s assets will become wholly owned by the DMK Group and will continue to operate from the existing site at Hoogeveen, Netherlands.
DMK said in a statement that the decision to end the partnership reflects the “fact that both partners wish to develop their businesses in different directions.
Separation of activities will enable clear and focused strategies for the future to be implemented for both Volac and DMK Group, aimed at delivering the best interests of their respective businesses, stakeholders and shareholders, the company said.
The move is part of a realignment to repositions its business areas for the future, in which the DMK Group will focus on value creation and take a very market-oriented approach.
intends to invest in growth areas in the years to come including
infrastructure, mergers and acquisition activity, research and development partnerships, marketing, sales and
However, Volac and the DMK Group will continue to enjoy an excellent working relationship. As part of the joint venture, Volac has been responsible for the sales and marketing of all products manufactured by DV Nutrition.
“Volac will continue to supply protein products sourced from the DV Nutrition factory to its sport and active nutrition customers for the foreseeable future after which new customer supply arrangements will have been put in place by Volac,” DMK said in a statement.
The intention is that products manufactured by DV Nutrition will be supplied directly to customers in the future by the DMK Group. The value of the acquisition was not disclosed.