FrieslandCampina sells Romanian branch

Dutch dairy giant FrieslandCampina has decided to sell its Romanian operations to Hungarian concern Bonafarm. This marks the dairy group’s withdrawal from Romania, despite a strong local market position.

Limited synergy

FrieslandCampina expects to complete the transfer, which still requires approval from the Romanian competition authorities, by the end of December. Financial details have not been officially disclosed, but the deal is said to be worth between sixty and seventy million euros. The sale includes two production sites, in Cluj-Napoca and Târgu Mureș, and approximately 400 employees.

Although FrieslandCampina is the market leader in Romania and has a strong brand name with Napolact, it sees insufficient strategic alignment with its other activities. The group wants to focus on markets with higher added value and where it can better utilise the milk from its member dairy farmers.

Bonafarm is one of the largest agricultural holdings in Central Europe. It intends to invest in expanding capacity and strengthening commercial relationships. Rumours about a possible sale have been circulating for some time: even Danone reportedly had expressed interest, according to Romanian business newspaper Ziarul Financiar, but Bonafarm ultimately came out on top.