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Arla Foods Intends to Acquire Friesland Foods Fresh Nijkerk

AMERSFOORT, The Netherlands - Arla Foods amba and Royal FrieslandCampina N.V. have reached agreement in
principle about the sale and purchase of all the shares in Friesland Foods
Fresh Nijkerk by Arla Foods. The transaction includes the Friesland Foods
Fresh Nijkerk fresh dairy business, its assets and the brands Breaker,
Milk&Fruit and Kwarkyoghurt. A ten-year licence agreement has been entered
into for the use of the Friesche Vlag brand for fresh dairy products in the
Netherlands only. The former Campina brand, Melkunie, is also part of the
transaction. The transaction is expected to be completed in the second
quarter of this year. FrieslandCampina is guaranteeing the supply of raw milk
to the factory in Nijkerk until 1 January 2017. The transfer of the Friesland
Foods Fresh operations to Arla Foods is partly dependent on European
Commission approval.

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