Mumbai: Prabhat Dairy on Monday announced that it has entered into definitive agreements with Tirumaia Milk Products Private Limited, a wholly owned subsidiary of French dairy multinational Groupe Lactalis, for the sale of its dairy business for a consideration of INR 1.700 crore.
The transaction involves sale of the dairy business undertaking of Prabhat Dairy by way of slump sale on a going concern basis, along with the sale of 100% shareholding in Sunfresh Agro Industries Private Limited (a step—down subsidiary of Prabhat Dairy Limited) via a share purchase agreement. Vivek Nirmai, Joint Managing Director of Prabhat Dairy Limited, said “We are pleased to announce this agreement with Lactalis.
For the past 20 years, Prabhat has established itself as one of the most trusted dairy brands in the country. We have built a world-class integrated milk and dairy products company, with strong supply partnership with over 100,000 farmers, two state—of—the—art manufacturing facilities, cutting edge technology and stringent quality standards. The association with Lactalis — one of world‘s largest dairy players will offer this business a strong platform for accelerated growth momentum in becoming one of the largest private dairy businesses in India.
“Raviraj Vahadane, CFO of Prabhat Dairy Limited, said “The acquisition of the dairy business undertaking of Prabhat by Lactalis represents a meaningful opportunity for the employees of Prabhat to be associated with one of the global leaders in the dairy products business.” The Company intends to share a substantial portion of the proceeds from the sale with shareholders after meeting its tax and transaction cost obligations.
On sale of the above business segment, Prabhat Dairy Limited intends to further develop its cattle feed business in various parts of the country, as well as expand into allied businesses such as animal nutrition and animal genetics. The acquisition is subject to customary conditions precedent, including approval from the Competition Commission of India and other conditions precedent.
