Newlat to acquire stake in Italian dairy group CLI

Italian pasta and baked goods producer Newlat is said to have signed an agreement to acquire a 46.24% stake in dairy group Centrale del Latte d’Italia (CLI).

CLI is engaged in the production and distribution of nearly 120 products, including milk and its derivatives.

These products are sold in the market under various brand names such as TappoRosso, Mukki, Tigullio and Vicenza.

According to Reuters, Newlat will be acquiring the stake in the dairy company from group stakeholders, including supermarket firm Finanziaria Centrale del Latte di Torino.

According to the agreement, Newlat has agreed to pay shareholders €1 and 0.33 Newlat ordinary share for each CLI share.

The company also intends to put forward a mandatory proposal to acquire the remaining stake in CLI for the same price.

Concurrently, CLI stakeholders have agreed to invest in Newlat by buying a 5.3% interest in the company.

Upon completion of the deal, Newlat is expected to become one of the major domestic operators in the sector.

Established in 2004, Newlat produces various food commodities.

In addition to selling in the Italian markets, the company also exports food products to other parts of the globe through significant partnerships with international distribution chains and operators.

Last month, Newlat reportedly entered talks to acquire a significant stake in a dairy group Centrale del Latte d’Italia (CLI).

According to Reuters, the company’s move to acquire CLI came in response to the outbreak of the coronavirus (Covid-19), which has considerably increased the sales of food commodities in Italy.

As part of this initiative, Newlat has signed a letter of intent (LoI) with CLI’s top investor Finanziaria Centrale del Latte di Torino to negotiate the acquisition.