Latterie Friulane saw sales suffer after product recall last year

Latterie Friulane saw sales suffer after product recall last year

Parmalat has moved to buy the business assets of regional Italian dairy co-operative Consorzio Cooperativo Latterie Friulane.

The dairy giant, controlled by France's Lactalis, is set to acquire the co-op's production, sales and distribution operations, as well as brands including Latterie Friulane, Latte Carnia and San Giusto.

The farmers behind the Latterie Friulane co-op will continue to supply the business with milk, Parmalat said.

In a statement, Parmalat said the deal was "executed by assuming a net invested capital for about EUR5.75m (US$6.85m) and a bank debt for the same amount".

Latterie Fruilane generated revenues of EUR57m in 2013. Its sales for 2014 are estimated at EUR37m. A product recall last year is said to be a factor in the decline in revenues last year.

Parmalat said it would look to expand the business and "implement a plan designed to regain competitiveness".