SADAFCO acquires the Polish company Mlekoma

Seeking to expand its MILK powder supplier base, Saudia Dairy and Foodstuff Company has acquired Polish dairy producer Mlekoma through its subsidiary SADAFCO Poland.

The acquisition agreement provides the Saudi company with an initial 76 percent stake in Mlekoma Sp zoo and its Foodexo sp. Z oo (Mlekoma Group), SAR 120 million ($32 million) deal.

In Poland, the Mlekoma group owns two factories specializing in the production of dry, condensed and liquid products, as well as whole milk, cream, buttermilk and milk-vegetable powders. In addition, the group's business activities include exports to Europe, Africa, the Middle and Far East.

As a result of the acquisition, the financial results of both parties for the next quarter will be consolidated under SADAFCO, as recently announced by the Saudi Stock Exchange (Tadawul). The terms of the agreement stipulate that Mlekoma's existing board of directors will continue to exercise its management functions under the new leadership.

Wout Mattis, CEO of SADAFCO, said: “This move is the result of SADAFCO's determined commitment to remain profitable despite the many challenges we face in a highly competitive domestic market. Our acquisition gives the opportunity to buy milk powder in-house, which ensures the security of supply and flexibility in the global market.

“We see this acquisition as an opportunity to ensure that Saudi Arabian-branded products remain at the center of consumer attention and continue to contribute to the overall growth of the Saudi Arabian economy in the long term.”

PioneerProduct based on arabnews.com