Almarai in $4m acquisition

Almarai in $4m acquisition

Saudi dairy company Almarai has finalised a deal to buy out Mead Johnson from their local infant formula venture.

Almarai and Mead Johnson set up International Pediatric Nutrition Company in 2010 to sell infant formula products.

Under the terms of their agreement, the parties said they would review the venture three years later, which has led to a restructuring of their partnership.

Almarai has paid US$4m to buy out Mead Johnson and become the sole shareholder of the venture. The two sides have struck deals on the continued use of trademarks and technical support. IPNC markets formula under Mead Johnson's Enfagrow and Enfamil brands.

Almarai operates in the dairy, bakery and poultry sector and suppliers over 48,000 customers in the GCC daily, according to the company's website.