Denkavit acquires Volac’s Milk Replacer business, aims for global leadership in dairy nutrition industry

UK –  Dutch-based Denkavit Group has successfully acquired the milk replacer business of UK’s Volac International Limited in a strategic move to strengthen its foothold in the calf milk replacer industry.

The acquisition positions Denkavit as the sole owner of Volac’s milk replacer sales organization and the Volac Socoor business in Italy.

As part of the deal, Volac will continue to supply and blend products for the UK and Ireland home markets.

The buy-out reflected Denkavit’s commitment to elevating the acquired business “to the next level” and underscored its ambitious goal of achieving global leadership in the calf milk replacer industry, according to the company.

Erik Buys, CEO of Denkavit, emphasized the acquisition stating that it provides the company a “strong position” in the UK and Irish markets.

“The move aligns with Denkavit’s strategy to further solidify its presence in the industry,” he noted.

“As our portfolio expands into feed additives, we want to build on the synergies this brings. We have made the decision to sell our milk replacer business to a leading player who can give it the focus it deserves,” David Neville, CEO of Volac, added explaining the rationale behind the sale.

In addition, last year, Volac announced the closure of its purpose-built finishing and packing facility near Kells, Co. Meath, Ireland.

The company revealed plans to consolidate production into its UK manufacturing facility, with production at the Kells facility ceasing at the end of March 2024.

Volac assured its customers that there would be no disruption in terms of product availability or quality in the Irish market.

The prominent dairy nutrition company had initially invested €3.3 million in the Kells facility in 2018, creating 16 manufacturing jobs.

In terms of finances, the company, with operations in the UK, Ireland, Italy, and the Czech Republic, reported pre-tax profits of £34.8 million on a turnover of £103.9 million for the financial year ending December 31, 2022.

Despite anticipating a challenging trading period of 12 months, Volac remained confident in the future of its business and the dairy industry.

The acquisition by Denkavit and the strategic consolidation of production signals a dynamic shift in the company’s focus, reinforcing Denkavit’s determination to lead the global calf milk replacer market.