Lactalis to acquire Portuguese cheese maker Queijos Tavares

Lactalis is set to further deepen its presence in Portugal with the acquisition of local cheese maker Queijos Tavares.

The France-headquartered dairy giant said it has bought the cow’s, sheep and goat’s cheese business from Lisbon-based private-equity firm Crest Capital Partners. Financial terms were not disclosed in a statement from Lactalis.

Lactalis' latest deal in Portugal follows its acquisition of Sequeira & Sequeira in March last year.

Founded in 1996, Queijos Tavares produces cheeses in the regions of Seia and Fundão in central Portugal.

The company supplies products under the brands Seia do Tavares, Serras de Penela, Damar, and Monte da Soalheira.

It supplies cheese to food distributors and the hospitality sector. Its range includes three products with Protected Designation of Origin (PDO) status.

The deal includes the acquisition of Queijos Tavares’ two production facilities located in Seia and Fundão. It will increase Lactalis’ production sites in Portugal to four, including Sequeira & Sequeira, which was integrated in 2024, according to the statement.

As part of the transaction, 120 employees will join Lactalis' operations in Portugal, bringing its total workforce in the country to approximately 820.

The transaction is subject to approval by competition authorities.

Crest Capital had not responded to Just Food's request to comment on the transaction at the time of writing, and why it had opted to sell the business.

A family-owned group founded in 1933 in Laval, France, Lactalis operates across 50 countries with nearly 270 dairies and cheese dairies.

In April, the group announced it exceeded €30bn ($34.1bn) in revenues last year for the first time.

However, the company’s net profit dropped 19% in 2024 to €359m due to an unquantified and unspecified tax settlement late in the year with the French authorities.

Early in 2024, the privately-owned company reportedly came under investigation by the Parquet National Financier (PNF), or the National Financial Prosecutor’s Office, for alleged tax fraud dating back to 2018.

Nevertheless, revenue rose 2.8% to €30.3bn, but slowing from the 4.3% growth in 2023.

Operating income increased 4.3%, although Lactalis did not provide an end figure, while net income dipped from €428m in the prior 12 months.

Last year, the dairy giant said it invested over €1bn in its manufacturing network, including facility upgrades in France, Italy, the US and Australia.

These upgrades included improvements at its Larceveau creamery for Ossau-Iraty cheese, and installation of new production and packaging lines at facilities in Certosa, Italy; Tulare, US; and Bendigo, Australia.