Newlat rationalizes activities with the subsidiary Centrale del Latte d'Italia
Integration of plants, generation of cost synergies, exchange of know-how
Centrale del Latte d'Italia SpA (Cli) and Newlat Food SpA announce that, on 18 December 2020, they signed a contract under which, starting from 1 January 2021, Newlat Food will lease to Cli, company's milk & dairy branch owned by Newlat Food, having as its object the exercise of the processing of raw materials and the production of so-called milk & dairy products (i.e. milk and milk-based products, as well as dairy products) for a total turnover and an EBITDA expected for the year 2020 which should exceed Euro 100 million and Euro 10 million respectively.
The operation is strategic and of fundamental importance for the companies and their shareholders, as well as for the development of the integration of Cli in the group headed by Newlat Food, as it will allow the integration of the respective industrial plants and the generation of cost synergies, procurement, as well as the exchange of industrial know-how between the parties. The efficiency deriving from this aggregation process will play a fundamental role in a context characterized by important market changes and constant pressure in terms of both demand and competition, especially on the milk business. The operation will also make it possible to aggregate industrial plants, ancillary structures and brands with high recognition both at regional and national level. "The operation will therefore allow Cli to assume, both from a structural and operational point of view, the role of leader in the dairy sector in Italy, with a development perspective aimed at the main European markets and with strategic benefits for shareholders and all stakeholders", announced a press release.
The contract will start from 1 January 2021 and will have a duration of two years; it will be automatically renewed for a further year unless canceled with at least 6 months' notice. The activities of the business branch covered by the contract are carried out through the plants in Reggio Emilia, Salerno and Lodi, as well as through the depots in Reggio Emilia, Lodi, Rome, Eboli, Pozzuoli and Lecce. According to the terms of the contract, Cli will have to pay Newlat Food an annual fee determined as follows: a fixed component equal to Euro 2,000,000.00, plus legal VAT; a variable component that will be determined on a quarterly basis and will be equal to 1.5% of the turnover of the reference quarter of the business unit, plus the legal VAT. Cli also informs that today it has been made available to the public at its registered office in Turin, via Filadelfia n. 220, on its website and on the authorized storage mechanism eMarket Storage, the information document relating to the transaction, prepared pursuant to art. 5 of the Opc regulation.
EFA News - European Food Agency