Fonterra and Nestlé have reached a deal to sell their Brazilian joint venture — Dairy Partners Americas (DPA) to Lactalis for BRL 700 million ($132.2 million).

The deal, which is subject to regulatory authority approvals, is likely to close by mid-2023.

Dairy Partners Americas was formed by Fonterra and Nestlé in 2003 for manufacturing and commercializing dairy products across Latin America. In 2014, the dairy joint venture refocused its operations on Brazil and chilled dairy, said Fonterra.

The New Zealand-based dairy company owns a stake of 51% in Dairy Partners Americas, while the remaining 49% stake is held by Nestlé.

Dairy Partners Americas, which operates a couple of dairy plants and has a workforce of 1,300 people, markets brands such as Nestlé, Ninho, Chamyto, Chandelle, Neston, Chambinho, and Molico.

  Brazil, Dairy industry news, Dairy Partners Americas, Fonterra, Lactalis, Nestle