Fonterra, Foodstuffs reach agreement on sale of Kapiti Foods

15/11/05 Fonterra and Foodstuffs Wellington have announced that they have signed a Heads of Agreement for the sale of Kapiti Fine Foods.

The agreement is subject to approval from the New Zealand Commerce Commission (NZCC) and completion of the formal due diligence process.

“The acquisition of Kapiti Fine Foods will further support Fonterra Brands’“Winning through Brands” strategy which focuses on strong brands that deliver faster growth and better margins,” said Fonterra Brands Managing Director Sanjay Khosla.

“Under the proposed agreement Fonterra Brands will acquire a range of assets including production sites at Palmerston North and Paraparaumu. Fonterra Brands will also acquire the rights to supply the Pam’s milk and cream brand in the lower-North Island. The Kapiti branded cheese and ice cream will provide a strong high-value brand in specialty segments,” Mr Khosla said.

Both organisations stressed that at this stage it’s business as usual and too early to speculate on the outcome of the NZCC application and due diligence processes, which are expected to conclude in the first quarter of next year.

http://www.scoop.co.nz/stories/BU0511/S00226.htm