Nestlé, Fonterra Sell Dairy Partners Americas To Lactalis

The deal is expected to close by mid-2023 and is subject to approval by the Administrative Council for Economic Defense (Cade).

Under the terms of the agreement, Lactalis do Brasil will acquire the business of DPA Brasil, as well as the intellectual property rights related to the use of the brands Chambinho, Chamyto and Chandelle in the country.

In addition, it will have a long-term licence to use the brands Nestlé, Ninho, Neston, Molico and Nesfit, exclusively for the segment of refrigerated dairy products.

With the transaction, Lactalis will absorb the entire operation of DPA, including its factories, distribution centres, and employees, including head-office staff and sales team members.

Fonterra and Nestlé set up DPA in 2003, to manufacture and market dairy products across Latin America. In 2014, the joint venture refocused its activities on Brazil and the production of chilled dairy products. Fonterra had a 51% stake in DPA, while Nestlé held the remaining 49%.

DPA operates two factories, in Araras and Garanhuns, employing 1,300 people. DPA’s best-known brands in Brazil include Nestlé, Chamyto, Ninho, Chandelle, Chambinho, Neston and Molico.

Present in Brazil for almost a decade, Lactalis owns well-known local brands such as Parmalat, Président, Batavo, Poços de Caldas, Itambé and Elegê.

ESM