US dairy giant Dean Foods has this afternoon (28 July) said it has sold UK organic business Rachel's to France's Lactalis.

A spokesperson for Dean Foods confirmed the deal with Lactalis, one of Europe's largest dairy processors and owner of brands including President and Galbani.

Dean Foods reportedly hired advisers in late May to look into the sale of Rachel's. The US group acquired Rachel's in 2004 when it bought the company's owner, Horizon Organic Dairy.