West Cork-based food group Carbery has sold part of its interests in Brazil with the acquisition by French dairy group Lactalis Groupe of BRF’s dairy business.
Since late 2012, Carbery has been involved in a joint venture with BRF Brazil Foods, which deploys the West Cork company’s innovative whey-processing technology in Brazil.
The Lactalis acquisition also includes Carbery’s 50% stake in the Nutrifont joint venture with BRF.
Brazil’s antitrust authority approved the Lactalis application to buy BRF’s dairy units, reportedly for 1.8 billion reais (€715m) in April.
That acquisition is now complete.
While Carbery did not disclose its share of the sale, the company said it was pleased with the divestment outcome which delivered a healthy return on its investment.
“Carbery will continue to have a strong presence in Brazil with the ongoing growth of its Synergy Flavours facility in Vinhedo, Sao Paulo.
"With customers throughout Europe, the USA, Middle East and Asia, Carbery is committed to growth and continued expansion in global markets as a major international supplier to the food and beverage industry,” said a Carbery spokesperson.
Lactalis, whose European brands include Président and Société Roquefort, uses the Parmalat brand in Brazil. As well as acquiring BRF’s dairy operations in Brazil, it also acquired its brands Batavo and Elege.
BRF said earlier this year that it wanted to sell focus on its meat businesses and international expansion.
Dairy represented close to 10% of BRF’s net revenue of 30.5 billion reais (€7bn) in 2013. Brazil’s total dairy market was worth 62 billion reais in 2013, down from 56.2 billion reais in 2012.
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