Dairy company Leite Rio has bought rival Ebro Puleva’s milk factory in Arteixo, Galicia, and its Leyma milk brand for €12.5m (US$15.3M), the companies announced in a statement filed with local stock market watchdog Comisión Nacional de Valores.
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As part of the deal, Lugo, Galicia-based Leite Rio will supply Ebro Puleva with a range of undisclosed dairy products. It will sell 50m annual litres of milk to Puleva.
Puleva said it will concentrate in developing its more important Ram and Castillo milk brands and spend more in research and technology initiatives for its dairy division, which sells Omega3-fortified and other nutraceutical milk brands.
Puleva and Leite Rio said they will sign a more definite collaboration agreement in 45 days.
