Dallas, May 8, 2009 – GRUPO LALA, one of the largest dairy companies in the world, and Dairy Farmers of America, Inc. (DFA), a leading U.S. dairy cooperative, today announced that LALA has acquired milk processing company National Dairy from DFA. The purchase expands LALA's presence in the United States and allows DFA to invest in new strategic projects.
National Dairy, based in Dallas, is one of the largest milk processing companies in the United States and a leading producer of branded and private-label dairy products. The company's most recognized regional brands include Borden®, Dairy Fresh, Velda Farms, Flav-O-Rich®, Sinton's®, Cream O' Weber®, Meyer Dairy, Dairymens®, Coburg Dairy®, Goldenrod® and Georgia Soft Serve Delights.
The company had recorded revenue of $1.6 billion in 2008, and earings before interest, taxes, depreciation and amortization were $38 million. DFA will continue to enjoy a full supply agreement with National Dairy Holdings in areas where it has been supplying milk to NDH, says Kristi Bell, media relations manager for DFA. DFA supplies about 3.1 billion lb. of milk to NDH, about 8% of its total marketings.
"Acquiring National Dairy and its leading regional brands provides LALA a unique opportunity to further broaden the manufacturing and marketing of value-added dairy products in the United States,” said Eduardo Tricio, chairman of LALA. "We look forward to working with National Dairy's management and employees to deliver top-quality, innovative and nutritious products to customers.”
"LALA brings a breadth of resources and strong track record for understanding consumers' needs, creating and manufacturing innovative products and marketing brands, said Rick Beaman, president of National Dairy.
National Dairy operates 18 processing facilities in the United States and will operate as a wholly-owned subsidiary of LALA. The existing management team will continue to lead day-to-day operations.
"We enjoy a strong relationship with LALA and look forward to continuing that relationship well into the future. They are a reputable company, and, like DFA, are focused on their people and on producing top-quality products,” said Tom Camerlo, chairman of the DFA Board of Directors. "The National Dairy sale is truly a win-win scenario, as LALA is gaining a company with strong performance in the U.S. market, and DFA can continue to explore new investment opportunities on behalf of its members.”
LALA's branded products have been quickly growing in popularity among U.S. Hispanics, while the acquisition of the Frusion and La Crème brands has bolstered its share of the drinkable yogurt and yogurt-based dessert categories respectively.
About GRUPO LALA
Founded in 1949 in La Laguna, Mexico, GRUPO LALA is one of the largest dairy companies in the world and the leading producer of milk, yogurt, cheese, cream and yogurt-based desserts in Mexico. The company owns 23 manufacturing facilities in Mexico, the U.S. and Central America, employing 30,000 people. LALA's distribution network, the largest in Latin America, comprises 160 distribution centers and 6,000 refrigerated routes, serving more than 550,000 customers every day. The company's portfolio of brands includes LALA®, Frusion®, La Crème®, Nutri Leche®, Los Volcanes®, Monarca®, Mileche®, Vive®, Siluette®, Natural'es®, Bell® and Parmalat®. LALA's mission is to develop and produce top-quality, innovative and nutritious products for its customers while supporting a culture of corporate social responsibility, education, poverty relief, environmental protection and sports and cultural activities. For more information, visit www.lalafoods.com.
About National Dairy
Based in Dallas, National Dairy is one of the largest milk processing companies in the United States and a leading producer of branded and private-label dairy products. National Dairy operates 18 manufacturing facilities and 79 stand-alone distribution centers producing a diverse range of dairy products in 13 states. The Company's most recognized regional brands include Borden®, Dairy Fresh, Velda Farms, Flav-O-Rich®, Sinton's®, Cream O' Weber®, Meyer Dairy, Dairymens®, Coburg Dairy®, Goldenrod® and Georgia Soft Serve Delights.
Dairy Farmers of America, Inc. is a leading dairy marketing cooperative that serves and is owned by nearly 18,000 dairy farmers in 48 states. Through programs and services designed to help make members' businesses more profitable, DFA brings added value in the form of farm lending options, health insurance, sustainability resources, risk management tools, member retirement plans and on-farm field and lab services. Through its Gold Standard Dairy Program, DFA member farms meet high standards in areas including animal well-being, environmental stewardship, employee training and milk safety and quality. In addition to marketing milk, DFA is one of the country's most diversified manufacturers of dairy products, food components and ingredients, and is a leader in formulating and packaging shelf-stable dairy products. For more information, visit www.dfamilk.com.