Financial valuation by Dimension
Cremo SA is Switzerland’s second-largest milk processor, employing around 800 people. It collects and processes milk from Western Switzerland. Over 90% of the company is owned by milk producers.
Innoprax SA is number two in the Swiss cold coffee market. It owns the Lattesso brand. The company, based in Meggen (LU), generates annual sales of CHF 20 million.
Launched on the market in 2013, the Lattesso brand has historically been produced by Cremo SA at its site in Sierre, Valais.
Innoprax SA has opened discussions with Cremo SA to ensure the long-term future of the company and its brand, and in anticipation of the eventual departure of its founder and majority shareholder.
Through this acquisition, the Fribourg dairy group is acquiring the number two in the Swiss cold coffee market and investing in a fast-growing segment, both in Switzerland and abroad, which offers attractive prospects.
Frédéric Métrailler, Managing Director of Cremo SA
This operation will enable us to expand our portfolio of brands. This new family of products, which will continue to be developed, also gives us greater visibility and awareness among consumers. Finally, we will benefit from Lattesso’s distribution channels, and vice versa. Thanks to the acquisition, Innoprax SA and Cremo SA will be able to cultivate significant synergies in sales and marketing.
Erich Kienle, Founder of Innoprax SA
In order to ensure the product quality, growth and development of the Lattesso brand, it was clear that this agreement with our long-standing partner Cremo SA was essential.
Dimension SA carried out an independent valuation of Innoprax SA on behalf of Cremo SA. The estimate of the market value of Innoprax SA was made prior to the transaction. It was intended to be used by Cremo SA as part of the negotiations and strategic considerations relating to the acquisition of Innoprax SA. Our work took into account the valuation methods and criteria used in practice for companies operating in the same sector. Various financial valuation approaches were used (yield method, multiples method, replacement cost method).
Dimension SA
The independent valuation of Innoprax SA took into account the growth prospects of the cold coffee market and Innoprax SA as number two in this market. The investments made to develop the Lattesso brand were also taken into account. Dimension SA’s work also included an analysis of the valuations applied to comparable transactions in the agri-food sector.
Dimension SA has specialised in the sale, acquisition and valuation of companies since 1994. A recognised player in Mergers and Acquisitions in Switzerland, Dimension SA is the preferred partner of company directors and entrepreneurs for analysing the value potential of their companies and carrying out business transfer operations. The company, based in Lausanne, Geneva and Zurich, has been part of BCGE Group since 2015.