Arla Foods: Dairy giant with Leeds head office to merge with DMK Group in 19 billion euros deal
Dairy giant Arla Foods, which has its UK headquarters in Leeds, has announced a 19 billion euros merger with the DMK Group.
In a move to create the largest dairy cooperative in Europe, the merger is set to bring together more than 12,000 farmers, creating combined revenues of 19 billion euros.
Arla Foods, which is owned by more than 7,600 farmers across Europe and headquartered in Leeds, is the world’s largest manufacturer of organic dairy products. Its brands include Lurpak, Puck and Castello.
As one of the largest suppliers to the German food retail industry, the DMK Group employs around 6,800 staff at more than 20 locations and has revenues of 5.1 billion euros.
Jan Toft Nørgaard, Chair of Arla Foods said: “The foundation of this partnership is formed by our shared values, and I am immensely proud of this proposed merger, which is a win-win for our cooperatives.
“The strength of both Arla and DMK Group lies in our shared commitment to quality and innovation, and I see DMK Group as the perfect partner in shaping a new and strengthened Arla, poised to lead in the dairy industry.”
The two groups have previously collaborated on several projects including, ArNoCo, which processes whey from DMK's cheese production into high-quality whey protein concentrate and lactose for Arla's global ingredients business.
Arla’s UK head office is located at Valley Park, on Savannah Way, just outside Belle Isle in south Leeds.
Ingo Müller, CEO of DMK Group, said: “Arla has established itself as a key player in the dairy industry, and by partnering up we will have a strong and attractive branded and private label product portfolio for all our customers.
“Through Arla’s global reach we can access consumers and customers beyond our current geographical reach as well as strengthening our business resilience. Our complementary strengths, both in business and mindset, will enable us to keep advancing in dairy technology and innovation, while also providing a strong home for farmers.”
The merged entity will carry the Arla name and its headquarters will be located in Viby J, Denmark.
It is subject to approval from the board of representatives in the cooperatives as well as regulatory approval. The agreement will be submitted for approval to the cooperative’s board in June 2025.