Arla Foods Ingredients is to press ahead with its acquisition of Volac’s Whey Nutrition business, after the deal was approved earlier this month by the Competition & Markets Authority.
Volac’s Felinfach whey processing facility in Wales would become “a cornerstone” of Arla Foods Ingredients’ global production facilities, with further investment and expansion planned in the coming years, the business – a wholly-owned subsidiary of Arla Foods – said.
The deal was initially announced in April. Volac’s site handles large volumes of whey and specialises in the production of whey protein isolate (WPI).
Arla said the purchase gave Arla Foods Ingredients a significant additional quantity of whey, helping it meet a growing market need.
There is particular demand for WPI in the health and sports nutrition sectors, which grew by 9% globally in value terms from 2010 to 2023 [Euromonitor 2024], Arla said.
It now projects its sales of WPI will rise significantly over the next five years. The facility will also produce whey fat concentrate and lactose.
“Our acquisition of Volac Whey Nutrition brings together two major manufacturers of whey ingredients and consolidates our position as a leader in the space,” said Luis Cubel, group vice president and MD of Arla Foods Ingredients.
“Having Volac’s experts – and its network of trusted supply partners – as part of our team gives us several strategic advantages. It expands our market reach, helping us serve even more customers, and strengthens our global supply chain at a time when demand for whey is growing.”
The two companies also “shared values and a joint commitment to quality, sustainability and innovation”, Cubel said. “We look forward to learning from our new colleagues and partners and harnessing our respective strengths to meet the evolving needs of manufacturers and consumers, especially in the sports nutrition space.”
Commenting on behalf of the Neville family, James Neville, joint owner of Volac, said: “We were always confident that Arla Foods Ingredients had the necessary expertise and values to take our whey nutrition business to the next level, and we are delighted to have reached this important step in the acquisition process. It’s great news for Volac Whey Nutrition, and for the whey ingredients sector, that these two innovative companies have been allowed to join forces.”
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