Italian dairy firm Parmalat is in exclusive negotiations to acquire a stake in Brazil dairy group Lacteos do Brasil (LBR) for an undisclosed amount.
LBR is a manufacturer of a wide range of dairy products including fresh milk, milk powder, yogurt, cheese, cream, butter and dairy drinks and some of the Parmalat brand products under license. The company processes more than 2 billion liters of milk annually and employs 5,800 people.
LBR, which is majority-owned by private equity firms Laep Investment and GP Investments, entered into administration earlier this year citing structural issues in the Brazilian dairy sector.
Laep previously announced the sale of shares valued $10m to offset potential losses in its key investments.