SWITZERLAND – The Swiss dairy processor, Emmi has agreed to sell its trading and supply company Emmi Frisch-Service AG to Transgourmet Group, Europe’s second-largest cash & carry and wholesale company for undisclosed sum.

According to Emmi, the logistics company was facing steady competition and cost pressure as a result of changes to customer needs in the segment.

Thus the decision to sell the company was arrived at following Emmi Frisch-Service AG’s inability to be run independently and efficiently.

Emmi initiated a process to determine business options for the subsidiary which it said had fallen below critical size.

As part of the transaction, Emmi logistics will continue to offer its supply expertise to its customers to the business.

“Over the past few months, Emmi has carefully analysed various options to ensure the continued existence of the subsidiary in the long term.

Following extensive consideration of different alternatives Emmi has decided to sell this non-strategic business, which generates sales of around US$110.33 million (CHF 110 million), to the Transgourmet Group,” said the company.

“In the Transgourmet Group, Emmi is pleased to have selected a buyer with the know-how to integrate the business of Emmi Frisch-Service AG effectively and continue it successfully in the long term.”

Emmi Frisch-Service AG operates as a refrigeration logistics company and serves retail and food service customers in Switzerland.

It was founded in 2000 from the merger of Burra and Interfrais with a purpose to supply Emmi products to the many independent companies that could not be reached by other means.

It supplies around 4,000 businesses including food service providers, hospitals and nursing homes, convenience stores, retailers and wholesalers.

All 160 employees from the business will be transferred to Transgourmet Group, with the transaction subject to regulatory approvals.

In 2014, Emmi sold its production facility for aseptic dairy products in the US to the Kansas-based KanPak.

In January last year, the company offloaded its 22% stake in US brand of Icelandic-style skyr yogurts Siggi’s with an aim to focus on milk and cheese products.