Royal FrieslandCampina N.V., The Netherlands, acquired a majority stake of 51% in Engro Foods, a Pakistan-based dairy producer. Through the strategic alliance, Engro Corp. will remain a significant shareholder and partner in Engro Foods.
FrieslandCampina and Engro Foods expect to take advantage of the conversion of the market from loose to packaged dairy consumption. Engro Foods will continue to operate under its own name.
Following the completion of the acquisition, Hans Laarakker will be appointed CEO ad interim, replacing Babur Sultan, who is leaving the company after spending a decade in senior leadership roles. Previously, Laarakker was vice president M&A and business development, involved in the preliminary phase of the acquisition. He was also managing director of FrieslandCampina Malaysia (Dutch Lady Malaysia), responsible for FrieslandCampina Singapore, Hong Kong and China from 2006-2010. He joined FrieslandCampina in 2003.
“The cooperation with Engro Foods will accelerate FrieslandCampina’s route2020 strategy. Through this well organized and highly successful company, we will obtain a significant presence in the Pakistani dairy market in which a growing middle class is buying more processed milk,” says Roelof Joosten, chief executive officer, Royal FrieslandCampina N.V. “Engro Foods offers us a basis on which we can build further. This acquisition will contribute to the value creation for our member farmers. Also, we look forward to contributing to Pakistan’s agricultural sector through knowledge transfer based on our established dairy development program.”
Engro Foods has played pivotal role in offering Pakistani consumers hygienic solutions in the drinking milk and specialized tea creamer segment through its flagship brands Olper’s and Tarang.
“This is a defining moment for Pakistan,” says Hussain Dawood, chairman of Engro Corp. “We believe this transaction will be instrumental in positioning Pakistan as an attractive investment destination for global companies and encourage others to follow. This partnership enables us to provide a wider array of affordable high-quality dairy products for a healthier Pakistan, especially for its younger population. Improving the well-being of millions of our farmers is a cause that our group has been focused on for the past five decades. Working with FrieslandCampina, a company owned by farmers, will help us to accelerate our work on improving productivity in the dairy sector. I am convinced that this partnership will create tremendous long-term value for our shareholders.”