The merger will bring together more than 12,000 farmers and will carry the Arla name. Its headquarters will be based in Viby J, Denmark with Jan Toft Nørgaard – chair of Arla foods – as chair of the merged business.
Peder Tuborgh, chief executive of Arla Foods, will serve as CEO, and DMK CEO Ingo Müller will step into the Arla executive management team as executive vice president of post-merger integration.
Tuborgh described DMK, the largest dairy cooperative in Germany, as a very attractive partner that shared Arla’s core values.
“Our strong market positions and product portfolios complement each other very well and our strong partnership in recent years has proven that DMK Group is an ideal partner for Arla,” he added.
Safeguarding European dairy
“Our joint market presence in Europe and globally will enable us to safeguard our production of healthy dairy products, ensuring stable food production in Europe, as well as bringing even more nutritious products to the world and our customers.”
Today’s announcement builds on a history of cooperation between the two businesses, including the joint venture project ArNoCo, which processes whey from DMK’s cheese production into high-quality whey protein concentrate and lactose of Arla’s global ingredient business.
Nørgaard added: “The foundation of this partnership is formed by our shared values, and I am immensely proud of this proposed merger, which is a win-win for our cooperatives.
“The strength of both Arla and DMK Group lies in our shared commitment to quality and innovation, and I see DMK Group as the perfect partner in shaping a new and strengthened Arla, poised to lead in the dairy industry.”
Detailed discussions
The detailed merger proposal will be discussed with members of the cooperatives as well as relevant employee representatives and Works Councils in the coming months.
Representatives of the Arla and DMK Group board will vote on the merger agreement on 17/18 June, with the deal expected to complete before the end of 2025 – pending regulatory approval.
“Arla has established itself as a key player in the dairy industry, and by partnering up we will have a strong and attractive branded and private label product portfolio for all our customers,” Müller concluded.
“Through Arla’s global reach we can access consumers and customers beyond our current geographical reach as well as strengthening our business resilience. Our complementary strengths, both in business and mindset, will enable us to keep advancing in dairy technology and innovation, while also providing a strong home for farmers.”
Meanwhile, metal packaging manufacturer Eviosys has been rebranded following its $3.9 billion acquisition by Sonoco.
