Fonterra to sell interest in US joint venture for almost $200 million
The sale did not have an impact on the co-operative's longstanding relationship with DFA, Theo Sperings says.
Dairy Farmers of America (DFA) will buy Fonterra’s [NZX: FCG] 50% interest in DairiConcepts, a dairy-based ingredients provider, for $196 million at the end of the year.
Fonterra and DFA have been in partnership for more than 15 years.
Fonterra chief executive Theo Spierings says the co-operative decided to exit the partnership as it was considered a non-core component of its strategy.
“As the DairiConcepts business is almost completely stand-alone operationally, we have agreed that it would be simpler for one of the partners to buy the other out,” he says.
Mr Spierings says the sale did not have an impact on the co-operative’s longstanding relationship with DFA - a national milk marketing co-operative in the United States.
“The US remains a key part of our global multi-hub strategy,” he says.
He says this divestment does not prevent Fonterra from exploring new growth opportunities for this milk pool.
DairiConcepts provides value-add dairy ingredients to Fonterra’s NZMP brand, which the co-operative sells to customers in the US market.
Fonterra and DFA were founding members of the Global Dairy Platform.
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Jason Walls
Thu, 19 Nov 2015
Thu, 19 Nov 2015
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Fonterra to sell interest in US joint venture for almost $200 million
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