Parmalat has announced that its subsidiary Parmalat Australia has signed an agreement with Fonterra Brands (Australia) to acquire its Australian yogurt and dairy desserts business, including two production facilities – Tamar Valley, Tasmania and Echuca, Victoria – with approximately 250 employees.
Last financial year, Fonterra’s yogurt and dairy desserts business reported revenues of around €95m. The stipulated enterprise value of the acquired business is approximately €10m. The acquisition, which is subject to the fulfilment of certain conditions, including the execution of agreements with Nestlé in connection with the utilisation of some brands in Australia, is expected to be completed in the first half of 2016.
Fonterra managing director Oceania Judith Swales said that it was selling its yogurt and dairy desserts business to lock in its competitive position in the Australian consumer market.
“Divesting the yogurt and dairy desserts business will allow us to focus on what we do best, so we can continue delivering a competitive milk price to our suppliers, benefits to our customers, innovative dairy foods to our consumers, and improved returns to our farmer shareholders and unit holders,” Swales said.
© FoodBev Media Ltd 2021
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