SYDNEY – New Zealand’s dairy cooperative Fonterra announced on Wednesday it was selling 50 percent of its shares in the German company DFE Pharma worth NZ$633 million ($390 million) to private equity firm CVC Capital Partners.
The multinational Fonterra – owned by more than 10,000 New Zealand agri-farmers – is responsible for a third of global dairy exports and has a stake in several other companies, including Chile’s Soprole.
“We are now at the end of that process and have sold our share of DFE Pharma to CVC Strategic Opportunities II, a fund managed by CVC Capital Partners, a leading private equity and investment advisory firm,” Fonterra CEO Miles Hurrell said.
The money from the sale of DFE Pharma, a pharmaceutical company based in Germany – along with the proceeds from other assets – will allow Fonterra to reduce its debt by NZ$1 billion, the cooperative said in a statement.
Luxembourg-based CVC Capital Partners manages approximately $83 billion worth of assets in 73 companies worldwide.