Arla Food Ingredients edges closer to Volac buyout

The UK’s Competition and Markets Authority gave approval for the acquisition, the agreement for which was signed by the businesses in April.

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Through the purchase, Arla Food Ingredients will have significantly more whey and processing capacity.

How big is the whey nutrition category?

The category grew 9% between 2010 and 2023, with Arla predicting significant growth in the years ahead.

Volac’s business centres around its Felinfach, Wales, processing facility, which processes large whey volumes that are turned into whey protein isolate.

Arla Foods Ingredients will centre its production facilities at the Welsh site, with planned investment and expansion in the coming years.

Along with whey isolate, 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 Arla Foods Ingredients group VP and managing director, Luis Cubel.

How will Volac grow under Arla?

Having Volac’s “expertise” within the Arla business will help to develop its business, with several growth strategies already being explored.

“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,” Cubel added.

There were also synergies between the two businesses, as well as joint values and commitments to specific quality standards, sustainability aims and innovation goals.

Volac is owned by the Neville family and following the CMA’s approval, on behalf of the family, joint owner James Neville 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 reach this important step in the acquisition process.”