August 27, 2014

Parmalat to acquire assets of Brazilian dairy processor

Parmalat S.p.A. is to acquire some assets of Brazilian company Lácteos Brasil S.A for 250 million Reais (US$111 million).

The acquisition includes certain production units, including some brands, staff and administrative offices from Lácteos Brasil S.A. - Em Recuperação Judicial (LBR), which is a party to composition with creditors proceedings pursuant to Brazilian law was approved by the LBR Creditors' Meeting held on August 21.

The transaction, which involves a portfolio of activities involving UHT milk and local cheeses with 2013 proforma revenues of about 580 million Reais (US$256 million), will permit the Parmalat Group to regain full title to the exclusive license to use the "Parmalat" brand for the production and distribution of UHT milk throughout Brazil.

The transaction has to be ratified by the competent Bankruptcy Court and authorised by the antitrust authority (Brazilian Administrative Council for Economic Defense - CADE).