Arla Food Ingredients switches to Volac |’s whey food activities News

Arla Food Ingredients has signed a deal with dairy company Volac to acquire its whey food division and transform the Wales factory into a global manufacturing centre.

Volac – a family business founded in 1970 – specializes in converting whey into ingredients for sports nutrition, with the by-products sold for food and animal feed.

Arla Food Ingredients said the acquisition would play “an important role” in its future plans, adding that it sees the Felinfach whey processing facility as a global manufacturing center and “a cornerstone of an enhanced product offering in the performance, health and nutrition sectors” .

The group, headquartered in Denmark and a 100% subsidiary of Arla Foods, has signed an agreement to acquire the whey nutrition business by purchasing shares in Volac Whey Nutrition Holdings Ltd and subsidiaries Volac Whey Nutrition Ltd and Volac Renewable. Energy Ltd. Completion of the transaction is expected later this year, subject to required regulatory approvals.

Luis Cubel, group vice president and managing director of Arla Foods Ingredients, said: “This brings together two complementary offerings in a growing and increasingly international whey products space.

“Volac is a pioneer in the use of whey protein for performance nutrition and has a wealth of expertise and an incredibly talented team. It shares our commitment to helping companies around the world realize the full potential of whey, and we are extremely excited about the opportunities ahead.”

Volac added that the deal represented “a logical step” in its evolution as a family business and said it provided the springboard for the “optimal development” of the whey feed business, as well as the remaining animal feed business.

“Whey processing began at the Felinfach site over thirty years ago, and we couldn’t be more proud of everything that has been achieved since then by everyone involved in the business,” said James Neville, co-owner of Volac, on behalf of deNeville. family.

“When considering the future of Volac Whey Nutrition and the opportunities that lie ahead for that company, it was critical for us to choose a partner with the right values ​​and expertise. Arla Foods Ingredients has the ambition and knowledge to take the company to the next level.”

Volac Whey Nutrition’s portfolio includes the Volactive range, while Arla Foods Ingredients makes the Lacprodan range of sports nutrition products, including RTDs, powder shakes and protein bars.

The global sports nutrition industry has grown at a CAGR of 9% since 2010 and is expected to be worth $42 billion by 2028, up from $28 billion in 2023, according to Euromonitor.

Volac was advised by Houlihan Lokey, Ashurst, PwC and OCC, while Arla Foods Ingredients worked with Norton Rose Fulbright and EY.