France-based Lactalis has signed a definitive agreement to buy the milk-processing business of Maharashtra-based Prabhat Dairy for about Rs 1,700 crore through a slump sale.
Lactalis’ local arm, Tirumala Milk Products, will acquire Prabhat’s dairy business as well as its step-down subsidiary Sunfresh Agro Industries through a share purchase agreement.
The association with Lactalis will offer this business a strong platform for accelerated growth momentum in becoming one of the largest private dairy businesses in India. After the deal, Prabhat Dairy will focus on its cattle-feed business and expand into allied businesses such as animal nutrition and animal genetics.