Two medium-sized specialist food and drink logistics providers in the UK are being merged by the owner of Mueller Dairy Group, a large German food company.
The companies concerned are Culina Logistics, which specialises in handling chilled food products, and Baylis Logistics which is largely involved in ambient activities. The merger of their businesses will take effect from January 1, 2008, and the newly-merged company will be known as Culina Logistics Limited.Theo Mueller took a 50% stake in Baylis Logistics last year and the new group will be principally owned by his holding company.
Culina is also owned by Theo Mueller and has played a role in distributing the highly successful range of yoghurt-based products of Mueller's principle investment, Mueller Dairy Group. However, Culina is not a part of Mueller Dairy. Rather, Theo Mueller appears to be making a strategic investment in food logistics, possibly using the considerable volumes of Mueller Dairy to assist Culina.
The former chief executive officer of Culina moved to Baylis Logistics in 2005 and the merger of the two companies and Mueller's previous investment seem linked to this.
Culina is believed to have sales of around £80m(€120million) and Baylis Logistics of around £40m(€55million), with the two companies stating that the new company will have sales of £125m(€180million). Culina Logistics has operations in Italy and Germany. However, it is unknown whether these are particularly substantial or will play a role in the future of the group. In addition to Mueller Dairy Group, Culina has companies such as Danone, Unique and GUI as customers.
What appears notable about this deal is that an investor with a business as dynamic as Theo Mueller is so keen to invest in food logistics. The UK food logistics sector is highly competitive, dominated by large and aggressive retailers. Of course it may be simply an opportunistic move by Mueller, realising the increase in shareholder value that he can achieve through the merger.
The companies concerned are Culina Logistics, which specialises in handling chilled food products, and Baylis Logistics which is largely involved in ambient activities. The merger of their businesses will take effect from January 1, 2008, and the newly-merged company will be known as Culina Logistics Limited.Theo Mueller took a 50% stake in Baylis Logistics last year and the new group will be principally owned by his holding company.
Culina is also owned by Theo Mueller and has played a role in distributing the highly successful range of yoghurt-based products of Mueller's principle investment, Mueller Dairy Group. However, Culina is not a part of Mueller Dairy. Rather, Theo Mueller appears to be making a strategic investment in food logistics, possibly using the considerable volumes of Mueller Dairy to assist Culina.
The former chief executive officer of Culina moved to Baylis Logistics in 2005 and the merger of the two companies and Mueller's previous investment seem linked to this.
Culina is believed to have sales of around £80m(€120million) and Baylis Logistics of around £40m(€55million), with the two companies stating that the new company will have sales of £125m(€180million). Culina Logistics has operations in Italy and Germany. However, it is unknown whether these are particularly substantial or will play a role in the future of the group. In addition to Mueller Dairy Group, Culina has companies such as Danone, Unique and GUI as customers.
What appears notable about this deal is that an investor with a business as dynamic as Theo Mueller is so keen to invest in food logistics. The UK food logistics sector is highly competitive, dominated by large and aggressive retailers. Of course it may be simply an opportunistic move by Mueller, realising the increase in shareholder value that he can achieve through the merger.
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