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Fonterra and Nestlé will sell their Dairy Partners Americas (DPA) Brazil joint venture to French dairy company Lactalis for $133 million, subject to closing transaction adjustments.
The deal is expected to be completed by mid-2023.
The sale is aligned with the two companies' strategy of prioritizing its New Zealand milk pool.
According to Fonterra CEO Miles Hurrell, the sale of DPA Brazil allows us they prioritize their resources to the businesses that are core to our strategy.
DPA Brazil has been up for sale since January 2020 but the pandemic delayed any possible transaction.
To produce and market dairy goods across Latin America, Fonterra and Nestlé formed the joint venture in 2003. DPA shifted its emphasis to Brazil and chilled dairy in 2014.
Currently, Fonterra owns 51 percent of the JV, while Nestlé owns 49 percent.
DPA markets brands including Nestlé, Chamyto, Ninho, and Chandelle in Brazil. It runs two operations, employs about 1,300 people, and has two locations.
