Nutricia, a subsidiary of France-based yoghurt maker Danone, has agreed to acquire Gardians spray dryer and blending, packing and can-forming activities of the Sutton Group in Auckland as well as the spray dryer of Gardians, located near Balclutha.
This move comes after the company terminated contracts with the Fonterra, following the whey protein concentrate (WPC80) botulism scare in 2013.
Nutricia will acquire Gardians' drying plant in South Island, which has the capacity to produce around 20,000 tons of powder per year.
Sutton Group's blending and packing plant will allow the company to increase the exports of infant formula to China.
Nutricia noted that, "This transaction will provide Nutricia with a large milk drying capacity, along with long-term fresh milk supply access."
"With this investment, Nutricia not only pursues the development and diversification of its base powder sourcing, but also reinforces its New Zealand heritage."
The transaction, which is expected to be completed in the coming months, is subject to standard regulatory approvals.
Image: Nutricia to expand milk drying capacity in New Zealand. Photo: Courtesy of Somchai Som/ FreeDigitalPhotos.net.
