Numico sells Chinese dairy plant to American Dairy subsidiary
May 25, 2005
by FoodBusinessNews.net Staff
SCHIPHOL AIRPORT, NETHERLANDS — Royal Numico N.V. has reached agreement to sell its dairy manufacturing plant in China to Heilongjiang Feihe Dairy Industry Co., Ltd., a subsidiary of American Dairy Inc., for $7.3 million, Numico and American Dairy officials announced today. The transaction is expected to close on June 8.
The milk processing plant acquisition includes 19 raw milk collection stations. American Dairy said the acquisition will increase its daily milk powder production capacity by approximately 60%, or 270 tons of raw milk per day.
Numico officials said the sale is expected to improve substantially the financial performance of the company’s remaining baby food operations in China. The divestment also is in line with Numico's strategic decision to fully focus its Chinese baby food activities on its premium brand Cow & Gate in Shanghai and the Guangdong province, company officials said.
American Dairy operates in China through its wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy, located in Kedong County, is a producer and distributor of milk powder and soybean products in China.
American Dairy also has a milk powder processing plant, Sanhao Dairy, in Kedong County.
Royal Numico is a specialized nutrition company with leading positions in baby food and clinical nutrition and brings products to the market under the brand names Nutricia, Milupa and Cow & Gate, among others. The company serves customers in more than 100 countries and employs approximately 11,000 people