Danone has placed its dairy business in Argentina into a new venture with local food group Arcor.
The moves comes after the companies acquired outright Argentinian group Mastellone Hermanos, which owns the local dairy business La Serenísima.
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Danone and Arcor already owned 49% of Mastellone Hermanos through two separate shareholdings held by their existing venture – Bagley – and by Arcor itself.
The partners have acquired the remaining 51% in Mastellone Hermanos from the Mastellone family and the Dallpoint investment fund.
Danone and Arcor are forming a new 50:50 venture with Arcor that will comprise the French giant’s local dairy operations, Mastellone Hermanos and their jointly held logistics business, Logística La Serenísima.
The new venture will have eleven factories, ten from Mastellone Hermanos and the other from Danone. The plants will make products including dulce de leche, cheese, yogurt and desserts.
Danone’s Nutricia medical nutrition business and its minority stake in a local waters business will sit outside the new venture.
In a statement, Danone CEO Antoine de Saint-Affrique said yesterday (24 March) the new venture will “create a powerful growth platform with more opportunities for innovation, operational efficiency and greater reach”.
La Serenísima is Mastellone Hermanos’ flagship brand, spanning powdered milk, ricotta, butter, cream, yoghurts and desserts.
Products are exported to markets including Brazil, the US, Mexico and Russia.
In the statement, Arcor president Alfredo Pagani said: “For Arcor, this is a strategic project that reaffirms our commitment to the country and strengthens our value proposition in the consumer food products market.”
Arcor also markets snacks and confectionery products.
Neither party disclosed the financial details of the deal. The completion of the transaction depends on various conditions, including regulatory clearances.
