Fonterra, Foodstuffs reach Kapiti deal

Fonterra and Foodstuffs Wellington have agreed a sale of Kapiti Fine Foods to the New Zealand dairy co-op giant.

Fonetrra Brans will acquire a range of assets including production sites at Palmerston North and Paraparaumu, as well as the rights to supply the Pam’s milk and ice cream brand in the lower North Island. Kapiti brand cheese and ice cream is also included in the sale. The agreement is subject to approval from the New Zealand Commerce Commission and completion of the formal due diligence process.