French dairy major Lactalis has acquired the joint-venture assets in Brazil owned by Fonterra and Nestlé for $131,5 Million.
Lactalis, which already has a presence in the South American country, has struck a deal for Dairy Partners Americas (DPA) for BRL700m (US$131.5m). Fonterra holds a 51% stake in the venture, set up in 2003, and Nestlé owns 49%.
The transaction is expected to close by mid-2023, subject to approval from Brazil’s competition authority – the Administrative Council for Economic Defense (CADE).
Lactalis dominates the market in Brazil for dairy and soy-based products, followed by Nestlé and French peer Danone, according to research firm GlobalData.
DPA operates two plants located in Araras, Sao Paulo, and Garanhuns in Pernambuco state, employing 1,300 people, all of whom will be retained by Lactalis. It supplies dairy products, including milk-based beverages and yogurts, under the Nestlé brand and also Chamyto, Ninho, Chandelle, Chambinho, Neston and Molico.
New Zealand-headquartered Fonterra and Switzerland-based Nestlé initially created DPA to manufacture dairy products in Latin America. In 2014, the joint venture refocused its activities on Brazil and chilled dairy.
Lactalis said it has secured “long-term” licensing agreements to use the Nestlé trademarks of Ninho, Neston, Molico and Nesfit in Brazil and which will continue to be marketed by DPA.
Patrick Sauvageot, the managing director of Lactalis’ Brazil business, said in a statement that the acquisition of DPA will allow the company to "develop its commercial and geographic coverage" and "consolidate its position as responsible leader in dairy products in Brazil."
Source: Just-food.com
