PRESS RELEASE

St. Paul acquires Royal ERU

Powerful alliance to produce a wide range of high-quality (melted) cheese preparations

Tuesday, 2 April 2024

LOKEREN (BE), WOERDEN (NL), SINT JANSTEEN (NL) - St. Paul, a key player in the international (melted) cheese market, announces the acquisition of Royal ERU, subject to approval by the market authority ACM. This acquisition, following the strategic collaboration entered into by both companies in June 2023, marks a significant milestone in St. Paul’s growth ambitions by strengthening its position as a market leader in the (melted) cheese market.

Since the announcement of the strategic collaboration by both companies in June 2023, Royal ERU and St. Paul have acquired and integrated the cheese melting activities of Kasi Food, formerly part of the Lekkerkerker Food Group in Lopik, into Woerden and Sint Jansteen. The employees of Kasi Food, who became part of Royal ERU due to the business transfer, are currently operating from the Royal ERU facility in Woerden.

Shares
The shareholders of St. Paul and Royal ERU, who previously announced their collaboration, have successfully reached an agreement on the acquisition of Royal ERU. St. Paul intends to acquire all the shares in the capital of ERU Group B.V. The acquisition is still pending approval from the Dutch market authority ACM (Authority for Consumers and Markets).

Market Leader
The acquisition of Royal ERU by St. Paul creates a powerful alliance that will produce a wide range of (melted) cheese preparations for the consumer market, out-of-home market, and food industry. This diversification enables St. Paul to strengthen its market leadership and respond to the dynamic demands of various market segments.

Ambition
Dieter Kuijl, CEO of St. Paul, emphasizes the ambition behind this acquisition: “With this historic step, St. Paul becomes the largest (melted) cheese producer in the Benelux. We are determined to further develop and expand our diverse range of high-quality (melted) cheese products, meeting the diverse needs of consumers, out-of-home, and the food industry.”

Joint Forces
Royal ERU, founded in 1824 and known for its quality spreadable cheeses, sees the potential in this acquisition to strengthen its market position and optimize the product portfolio. Maurits Sandberg, CEO of Royal ERU, celebrating its 200^th anniversary in 2024: “The combined forces of St. Paul and Royal ERU will result in a wide range of high-quality (melted) cheese preparations. We are very excited about the opportunities to further grow our brands and explore new markets.”

With this acquisition, St. Paul and Royal ERU strengthen their positions in the market and continue to collectively strive for efficiency, quality, and growth in the (melted) cheese industry.