Lactalis, the world’s largest dairy company, announced it has reached an agreement with Fonterra to acquire the consumer and associated businesses of Fonterra.
The company says this purchase is part of the overall effort by Fonterra to sell its global consumer business (excluding greater China), consumer brands and the integrated businesses in Oceania, Sri Lanka and Middle East, representing more than $NZ5.6 billion in net sales.
The proposed transaction is subject to certain financial adjustments and conditions including approval by farmer shareholders, and receipt of certain regulatory approvals.
The acquisition encompasses well-known brands such as Mainland, Anchor, Perfect Italiano, Western Star, Ratthi, Cheesdale, Fernleaf, and Anlene as well as manufacturing facilities in Australia, New-Zealand, Sri-Lanka, Malaysia, Indonesia and Saudi Arabia.
Lactalis chairman Emmanuel Besnier says with this acquisition, we significantly strengthen our strategy across Oceania, Southeast Asia and the Middle East.
“Combining the Fonterra consumer business operations and market leading brands with our existing footprint in Australia and Asia will allow Lactalis to further grow its position in key markets,” he says.
“I'm delighted to become a key partner to Fonterra over the long term as well as I'm looking forward to welcoming new teams to the Lactalis family.”
Fonterra chief executive Miles Hurrell says as the world’s largest dairy company, Lactalis has the scale required to take Fonterra’s brands and businesses to the next level.
“Fonterra farmers will continue to benefit from their success, with Lactalis to become one of our most significant Ingredients customers,” Miles says.
“The sale agreement represents a great outcome for the Co-op as Lactalis Australia is present in many dairy products categories (cheese, white and flavoured milk beverages, yoghurt, butter and cream products).
“The company markets a broad portfolio of domestic and international brands in Australia including President, Galbani, Lemnos, Pauls, Vaalia, Tamar Valley, Harvey Fresh, Jalna, Oak and Ice Break and already has 15 manufacturing facilities and more than 2500 employees across the country,” he adds.
