Beer company Molson Coors has agreed to divest its UK maltings business Shobnall Maltings to Malteries Soufflet, a subsidiary of Soufflet Group.
The deal forms a part of Malteries Soufflet's long term strategy of entering the British malt market, which is said to be the second largest in Europe.
Upon completion of the deal, Molson Coors will focus on its core business of making and selling beer, Reuters reported.
The financial terms of the transaction are not disclosed.
With this investment, Malteries Soufflet will now own 27 maltings located in Europe, South America and Asia.
In addition, Malteries Soufflet has signed a long term malt supply contract as it plans to minimize the use of this industrial tool and share its expertise with global and local brewers.
Currently, Malteries Soufflet is capable of producing 2 273 000 tons of malt annually.
Image: Molson Coors to divest UK maltings business to Malteries Soufflet. Photo: courtesy of THE SOUFFLET GROUP.
