UK-based Volac has sold its stake in DV Nutrition that will continue to operate at its existing site in the Netherlands
Milk being delivered to DMK's DOC Kaas factory in Hoogeveen, Netherlands
The DMK Group and Volac have announced that they will bring their joint participation in DV Nutrition to an end, subject to receiving relevant approvals. At that point, DV Nutrition's assets will become wholly owned by the DMK Group and will continue to operate from the existing site at Hoogeveen (Netherlands).
DV Nutrition is a joint venture between DOC Kaas (part of DMK Group) and Volac and has been producing whey protein and lactose-based ingredients since 2004.
Volac and the DMK Group have said they continue to enjoy an excellent working relationship. However, the decision announced today reflects the fact that both partners wish to develop their businesses in different directions. Separation of activities will enable clear and focused strategies for the future to be implemented for both Volac and DMK Group, aimed at delivering the best interests of their respective businesses, stakeholders and shareholders.
DMK has defined clear roles for its business as defined in its "Vision 2030" which positions its business areas for the future. As part of the realignment, the DMK Group will focus on value creation and take a very market-oriented approach. DMK intends to invest in growth areas in the years to come including infrastructure, M&A activity, R&D partnerships, marketing, sales and distribution.
As of 1 January 2020, subject to prior competition clearance, the DMK Group is expected to acquire all of the shares in the joint venture which will then be located in the business unit "Industry" within the DMK Group.
It has been agreed not to disclose any information with respect to the purchase price and no redundancies are expected as a result of the change in ownership.
As part of the joint venture, Volac has been responsible for the sales and marketing of all products manufactured by DV Nutrition. Volac will continue to supply protein products sourced from the DV Nutrition factory to its sport and active nutrition customers for the foreseeable future after which new customer supply arrangements will have been put in place by Volac. The intention is that permeate products manufactured by DV Nutrition will be supplied directly to customers in the future by the DMK Group.