The New Zealand-based Fonterra made the announcement as part of a NZD $3.8 billion deal, which will include Fonterra’s global Consumer business (excluding Greater China) and Consumer brands; the integrated Foodservice and Ingredients businesses in Oceania and Sri Lanka; and the Middle East and Africa Foodservice business.
Lactalis will scoop up the factories in Stanhope, Cobden, Derrimut, Darnum, Spreyton, Wynyard, Campbellfield and Bayswater.
In addition to the base enterprise value of NZD $3.845 billion, there is potential for a further NZD $375 million from the inclusion of the Bega licences held by Fonterra’s Australian business, which if progressed would take the headline enterprise value of the transaction up to NZD $4.220 billion.
Fonterra said the inclusion of the Bega licences held by Fonterra’s Australian business would be confirmed once a dispute with Bega Cheese Limited is resolved.
If for some reason the Bega licences are not included in the sale, Fonterra expects to receive a fair value payment from Bega for the licences which would need to be determined at the time.
Under the terms relating to the sale, Fonterra will continue to supply raw milk, dairy ingredients and products to the divested businesses under long-term supply agreements.
Lactalis is the world’s largest dairy group with operations in more than 50 countries in the Americas, Europe, Africa and Asia Pacific.
The company employs more than 85,500 people with reported revenue of 30.3 billion euros in 2024, placing it among the top agri-food companies globally.
Fonterra’s New Zealand farmer shareholders will vote on whether to proceed with the sale to Lactalis at a special meeting in late October or early November
Fonterra’s annual meeting has been deferred from November 2025 to December 2025.
Subject to receipt of approvals, the sale is expected to be complete in the first half of 2026.
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