Lactalis Groupe to buy dairy units of BRF for $805m

French giant Lactalis Groupe will buy eleven dairy units of Brazil’s BRF through its subsidiary Parmalat for $805m, making it the second largest dairy company in Brazil.

Lactalis was represented by Indusval & Partners bank in the deal. A director of the bank, Samuel Oliveira, said that the company will use the Parmalat brand in Brazil as it does in other emerging markets.

"We are very engaged and intend to finalise the deal as soon as possible," he added.

BRF had said earlier this year that it wanted to focus on its meat business and international expansion and sell its dairy unit since Abilio Diniz had been appointed as chairman in the first half of 2013. Last year, the dairy division of the Brazilian firm reported proforma revenues of about €880m.

Lactalis also bought Brazilian gourmet-cheese maker Balkis last year, which has units in the states of São Paulo and Minas Gerais.

Marcelo Ricupero, a lawyer at law firm Mattos Filho, which is working with Lactalis on the deal, was quoted by WSJ as saying that Lactalis has worked to win the right to use the Parmalat brand name in Brazil.

Currently, Lactalis has a presence in 145 countries and employs over 54,000 people.