Royal FrieslandCampina selling operations in Romania to Bonafarm Group

Royal FrieslandCampina N.V. has reached an agreement to sell its operations in Romania including the Napolact brand and production facilities in Cluj-Napoca and Targu Mures to Hungarian company Bonafarm Group.According to a press release from Royal FrieslandCampina, the decision follows a strategic review of the company's activities in Romania and aligns with the RFC European Division's strategy to focus on core markets, value-added growth segments, company-wide synergies, and markets where milk from Royal FrieslandCampina's member farmers can be optimally utilized.Although FrieslandCampina Romania holds a leading position in the local dairy market, its operations offer limited synergy with the company's European portfolio and do not use milk from member farms of Royal FrieslandCampina. With Bonafarm Group as the new owner, the Romanian business will have new opportunities for growth, the release notes."FrieslandCampina Romania has a rich history and a strong position in the local market, with Napolact being one of the most appreciated brands in Romania. The company is well managed by experienced leaders supported by an exceptional team. Therefore, the decision to divest these operations was not taken lightly. This move allows us to better align our European portfolio with our strategy of maximizing the value of milk produced by Royal FrieslandCampina's member farmers, enabling us to allocate our resources more efficiently. At the same time, the transaction provides new growth opportunities for the Romanian business and the Napolact brand under the leadership of a partner with a stronger regional presence," said Dustin Woodward, President of Royal FrieslandCampina Europe, as quoted in the release.Attila Csanyi, CEO of Bonafarm Group, emphasized that, pending regulatory approval, the company plans to invest in expanding production capacity and contributing to the development of Romania's dairy industry."FrieslandCampina Romania is a company with a long-standing tradition. We are confident in the high quality of its production, its professional management, and its skilled workforce. As dairy processing is one of Bonafarm Group's strategic business areas, we see an excellent opportunity to further develop the company and the Napolact brand - leveraging local expertise, expanding the production facilities, and continuing our collaboration with the existing team. Subject to necessary regulatory approvals, we plan to invest in increasing production capacity, maintain strong relationships with commercial partners and suppliers, and support the development of Romania's dairy industry," said Attila Csanyi.The agreement concerns Royal FrieslandCampina's shareholding in the Romanian entity that owns the Napolact brand, operates two modern production facilities in Cluj-Napoca and Targu-Mures, and employs around 400 people. The transaction is subject to standard regulatory approvals, including clearance from Romania's Competition Council, and is expected to be finalized by the end of December 2025.As part of the process, Royal FrieslandCampina will work closely with Bonafarm Group to ensure a smooth transition for all stakeholders, the release adds.