Danone Serdika, the Bulgarian unit of French dairy giant Danone, is set to divest its production capacities in Sofia to its US partner Schreiber Foods.
The sale is a part of Danone's strategy to optimize production capacity, costs and improve competitiveness, following its weak results in Europe in the last months.
The transaction includes transfer of production facilities and Danone products produced at the Sofia facility; however, it does not include the Bulgarian unit of French firm Danone Serdika.
Following the acquisition, Schreiber Foods will continue to produce Danone-labelled products and will retain all the employees at the plant.
According to Danone, the deal would have a positive impact on the local partners, suppliers and farmers and would also allow maintaining the quality of the Bulgarian products.
Danone Serdika is also selling its production operations in Portugal and the Czech Republic to Schreiber Foods.
