Brazilian dairy firm LAEP Investments has struck a deal to lease a local production facility from French food giant Danone.

Under the agreement, LAEP holds the option to purchase the dairy factory, which is based in the state of Sao Paulo.

LAEP has been busy in recent weeks, striking a deal to buy the Poços de Caldas brand from Danone. The two sides also agreed for LAEP to hold the licence to the Paulista range in Brazil, Bolivia and Paraguay.

Earlier this month, LAEP has also acquired local co-op Agro Pecuária Vale do Rio Doce.