Schreiber Foods acquires 51 per cent stake in Dynamix Dairy

Mumbai: US-based Schreiber Foods Inc has acquired a 51 per cent stake in Dynamix Dairy Industries Limited, a Pune-based food contract manufacturing firm for a total consideration of Rs 1.7 billion. Rabo India Finance was the financial advisor to Schreiber for the deal. Schreiber is one of the largest private label cheese companies in the US, with clients like McDonald''s, Wal-Mart, Sysco, Albertson''s, Burger King and American Stores.

Schreiber views this investment as the first material step towards increasing its presence in India and thereby in Asia. A Rabo India statement issued here stated that Schreiber''s equity contribution of Rs 34.6 crores along with credit facilities from Rabo India Finance of Rs 1.12 crores and customer advances of Rs 20 crores have been utilised to finance the complete take-out of the existing lenders as part of a settlement package.

Shailesh Shirali, executive director, Rabo India Finance, said, "Schreiber Foods is one of the global giants in dairy products and at 1.7 billion rupees, the Schreiber-Dynamix transaction is one of the largest deals in the food and agribusiness space in India."

Dynamix has a state-of-the-art milk processing-cum-product manufacturing plant at Baramati, Pune with a capacity of 1.2 million Litres Per Day and is one of the largest cow-milk based dairy companies in India. Dynamix is at the beginning of a turn around phase and has an impressive customer base of multinational food majors like Nestle, Britannia-NZ, Hindustan Lever, Glaxo Smithkline, McDonald''s, Pizza Hut, Tropicana etc.