(RTTNews) – Dairy Crest Monday said it has purchased the outstanding 50 percent share of Promovita Ingredients Limited held by Fayrefield Foods Limited for a cash consideration of 6 million pounds, funded from existing borrowing facilities.
Promovita was established in 2014 as a 50/50 joint venture between Dairy Crest and Fayrefield to develop and produce GOS, a prebiotic for use in infant formula.
After investing in the manufacturing capability at Davidstow and successfully producing GOS samples, Dairy Crest now believes that full ownership of Promovita is in its and shareholders’ best interests. It allows Dairy Crest sole control over the development of the GOS business and to fully benefit from the value that this business generates, the firm said.
The company will invest the funds primarily across its North American business, optimizing efforts in marketing, sales and R&D, and focusing on product superiority and pricing. Half of the investment will go toward price, product and packaging.
Saputo has agreed to sell an 80% stake in its Argentina dairy business to Peru’s Gloria Foods in a deal valuing the unit at about $855 million, as the Canadian processor trims its exposure to volatile markets and boosts capital flexibility.
Barry Callebaut invests €250 million (US$297 million) in a multi-year upgrade plan for its Wieze factory in Belgium, the largest chocolate production facility in the world. A separate €125 million (US$149 million) investment is earmarked for the company’s factory in Halle, Belgium. The Wieze upgrades cover infrastructure modernization, food safety enhancements, and the construction of a ring road to improve site safety.
