This includes Fonterra’s global consumer business, consumer brands and integrated businesses in Oceania, Sri Lanka and the Middle East, which are worth more than €2.8 billion in sales.
The deal encompasses brands such as Mainland, Anchor, Perfect Italiano, Western Star, Ratthi, Cheesdale, Fernleaf, Anlene and Anmum, as well as 16 manufacturing facilities in Australia, New-Zealand, Sri-Lanka, Malaysia, Indonesia and Saudi Arabia. Finally, 4,300 employees will join Lactalis Australia as part of the agreement.
The proposed transaction remains subject to certain financial adjustments and conditions including approval by farmer shareholders, and receipt of regulatory approval.
“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,” said Lactalis chair Emmanuel Besnier.
Fonterra CEO Miles Hurrell added that the sale represents a great outcome for the cooperative.
“As the world’s largest dairy company, Lactalis has the scale required to take these brands and businesses to the next level,” Hurrell said.
“Fonterra farmers will continue to benefit from their success, with Lactalis to become one of our most significant Ingredients customers.”
Lactalis Australia is present in the cheese, white and flavoured milk beverages, yoghurt, butter and cream categories, operating 15 manufacturing facilities and employing more than 2,500 people.
Globally, Lactalis is present in 50 countries and employs 85,500 members of staff. It owns brands such as Président, Galbani, Parmalat and Leerdammer.
