AsureQuality and Bureau Veritas to acquire DTS shares from Fonterra

New Zealand-based AsureQuality has entered into an agreement with French publicly listed company Bureau Veritas Group to acquire a 36.02% stake in Dairy Technical Services (DTS).

Based in Victoria, Australia, DTS is a cooperative testing service company that delivers microbiological and chemical laboratory testing to the food and dairy businesses.

As part of the deal, a consortium comprising Bureau Veritas Singapore and AsureQuality will buy the shares of DTS from dairy co-operative Fonterra Australia.

AsureQuality currently owns a 25.4% stake in DTS, while with the buyout of the shares from Fonterra, the consortium will become the complete owner of the Victorian company.

AsureQuality CEO John McKay said: "DTS is the market leader in Australia, contracting with Australia’s largest dairy processors and food companies, and this investment continues to strengthen our relationships with trans-Tasman customers.

"Following the acquisition, AsureQuality will have market leadership positions in both New Zealand and Australia, and this strengthens our credentials as a global expert in dairy testing.

"Bureau Veritas is a global leader in testing, inspection and certification and is looking to increase its interests in the food service business. Partnering with Bureau Veritas will strengthen both parties’ capacity to help our clients meet the growing challenges of quality and safety in the food supply chain."

Expected to be completed by the end of May, the transaction is subject to regulatory approvals.

With the acquisition, AsureQuality and Bureau Veritas together will be able to introduce extensive international testing experience to the Australian dairy and food industry.

They will also continue to deliver testing services to Fonterra.

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Image: AsureQuality and Bureau Veritas will be the joint owner of Dairy Technical Services. Photo: courtesy of AsureQuality.