Dairy firm Fonterra and FMCG multinational Nestle have agreed to sell Dairy Partners Americas (DPA) Brazil joint venture to French dairy company Lactalis for BRL 700 million (approx. $133 million), subject to closing transaction adjustments.
The sale, which has been delayed due to the pandemic related market conditions, is aligned with the co-op’s strategy of prioritising its New Zealand milk pool.
Created in 2023, Fonterra holds 51% stake and Nestle 49% of DPA. The company was created to manufacture and commercialise dairy products in Latin America, since 2014 the company has focused on Brazil and chilled dairy. DPA operates two facilities employing 1,300 people.
The deal is subject to regulatory authority approval, and it is expected to be completed by mid-2023.