Dairy cooperative Fonterra announced today (27 September) that it has entered into an agreement to sell Naturalac Nutrition Limited (NNL) to Etika (NZ) Ltd for NZ$7.8m (US$5.14m).
Etika (NZ) is a newly incorporated subsidiary of Etika International Holdings, a Singapore listed company with operations based in Malaysia.
NNL produces branded sports nutrition and weight management products under the Horleys brand name. It was acquired by Fonterra through its legacy company Kiwi Cooperative Dairies Limited, but Fonterra brands MD Sanjay Khosla said Horleys did not fit with the company’s strategy of ‘winning through brands’.
“We are building a more focused portfolio and believe that there are better investment opportunities to create long-term value for our shareholders,” Khosla commented.
Khosla continued by observing that Etika is well placed to build on NNL’s success and international growth.
The sale is conditional upon Etika Shareholder approval and meeting Singapore Stock Exchange documentation.