FONTERRA JOINT VENTURE AGREES TO BUY PHARMA LACTOSE BUSINESS
DMV-Fonterra Excipients (DFE) is buying Royal FrieslandCampina’s pharmaceutical lactose business and manufacturing unit
Fonterra’s 50:50 joint venture with Royal FrieslandCampina, DMV-Fonterra Excipients (DFE) is buying Royal FrieslandCampina’s pharmaceutical lactose business and manufacturing unit, FrieslandCampina Domo-Pharma. The total transaction value is NZ$106 million, of which Fonterra’s share is NZ$53 million.
DFE will buy the FrieslandCampina Domo-Pharma pharmaceutical grade lactose products range.
The transaction, which is likely to complete in March 2010, is subject to regulatory and other approvals.
Fonterra’s Managing Director for Ingredients, Andrei Mikhalevsky, said the transaction would add value to Fonterra by creating a larger scale pharmaceutical lactose business.
Synergies would be created by combining the two companies’ knowledge bases and R&D capabilities. These would benefit the shareholders of both Fonterra and Royal FrieslandCampina, as well as customers, Mr Mikhalevsky said.
About Fonterra
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.
The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.
