Fonterra acquires key NZDF brands

Under the details of the agreement, Fonterra will acquire most of NZDF's assets - the principal exclusions being Puhoi Cheese and NZDF's cheese business which will have use of the Anchor brand under a 10 year license. Assets acquired by Fonterra from NZDF are valued at NZ$754 million and the assets acquired by NZDF from Fonterra are valued at NZ$416 million. Fonterra said in a statement that the move represented an opportunity to align its domestic brands with its international portfolio. "Anchor is one of our international power brands and this is a once only opportunity to regain the brand in our home market," said Fonterra chief executive Andrew Ferrier. NZDF said it recognized the logic of Fonterra's strategy and while NZDF was acquiring a business with a lower profit base, it considered the Meadow Fresh and Kiwi Meats businesses to be very well run operations and well positioned in the New Zealand market. Following the transaction most employees are likely to transfer with the respective companies. About 1,500 current Fonterra employees may become part of NZDF while about 800 NZDF employees will become part of Fonterra.