Emmi sells its minority stake in siggi's
Emmi has owned a 22 % stake in The Icelandic Milk and Skyr Corporation (siggi's) following two transactions in 2012 and 2013, when Emmi was also a contract manufacturer for the brand. Siggi’s, headquartered in New York, is the pioneer in the production and distribution of Icelandic style yogurt skyr in the United States. Now, the shareholders of siggi’s have jointly decided to sell the company to French dairy group Lactalis, pending regulatory approval in the US. Emmi will profit significantly from this transaction in the financial year 2018.
The United States are Emmi’s largest foreign market. The majority of sales there are generated by the exports of Swiss cheese, as well as locally produced cow’s and goat’s milk specialties. In addition, Emmi holds a minority stake of 22 % in siggi’s.
Now, the shareholders of siggi’s have jointly decided to sell the company to French dairy group Lactalis.
Emmi will focus its US business even more on niches like goat's milk products (Cypress Grove, Redwood Hill Farm & Creamery, Meyenberg), organic, lactose free cow's milk products (Green Valley Organic) , organic cows's milk cheeses (Cowgirl Creamery) and speciality cheeses from Wisconsin and Switzerland (Emmi Roth USA).
Impressive growth story
Siggi’s was founded by Siggi Hilmarsson who, after moving to New York from Iceland, found American yogurt too sweet and full of extra ingredients. He started making his own yogurt in his kitchen. The recipe was based on skyr, the Icelandic style yogurt Siggi grew up eating in his native country. With seed investment from his former professor, Siggi started selling the yogurt at an outdoor market in downtown Manhattan in 2006. Since then the company has gone from a natural foods start-up to a fast growing yogurt brand in conventional grocery.
Significant impact on Emmi's net profit in 2018
The parties have agreed not to disclose terms of the deal. Emmi expects - based on current estimations - that the positive effect of this transaction on its net profit of the financial year 2018 will be in the range of a mid two-digit million Swiss franc amount. The transaction is subject to approval by the relevant competition authorities. Its closing is planned for January 31, 2018.
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