Arla Food Ingredients has agreed a deal with dairy company Borac to take over the company’s whey nutrition division and transform its Wales factory into a global production hub.
Volac is a family-owned company founded in 1970 that specializes in turning whey into sports nutrition ingredients and selling its by-products as food and animal nutrition.
Arla Food Ingrigent said the acquisition would play an “important role” in its future plans, with the Ferinfach whey processing facility becoming a global production hub and a “Performance, Health and Food It is envisioned as the basis for an enhanced product offering in the sector.
The group, headquartered in Denmark and a wholly owned subsidiary of Arla Foods, has signed an agreement to acquire the whey nutrition division through the purchase of shares in Volac Whey Nutrition Holdings Ltd and its subsidiaries Volac Whey Nutrition Ltd and Volac Renewable. Energy Ltd. The transaction is expected to close later this year, subject to necessary regulatory approvals.
Louis Kubel, Group Vice President and Managing Director of Arla Foods Ingredients, said: “This brings together two complementary products in the growing and increasingly international whey product space. “It will be.”
“Volac is a pioneer in the use of whey protein in performance nutrition, with a wealth of expertise and an incredibly talented team. We are excited about the opportunities ahead, as they share our commitment to helping people make the most of their time.”
Borak added that the deal was a “logical step” in its evolution as a family business, and said it was the starting point for the “optimal development” of its whey nutrition business and the rest of its animal nutrition business.
“Whey processing began at our Ferinfach facility over 30 years ago and we couldn’t be more proud of everything everyone involved in this business has achieved since then,” said Volac. Co-owner James Neville spoke on behalf of Neville. family.
“When thinking about the future of Volac Whey Nutrition and the opportunities that lie ahead for the business, it was very important to us that we choose a partner with the right values and expertise. We have the ambition and knowledge to raise the bar.”
Volac Whey Nutrition’s portfolio includes the Volactive range, and Arla Foods Materials manufactures the Lacprodan sports nutrition product range, including RTDs, powder shakes and protein bars.
According to Euromonitor, the global sports nutrition industry has grown at a CAGR of 9% since 2010 and is projected to reach a value of $42 billion by 2028, up from $28 billion in 2023.
Volac was advised by Houlihan Lokey, Ashurst, PwC and OCC, while Arla Foods Materials worked with Norton Rose Fulbright and EY.
