Clover buys yoghurt, long-life milk units
SOUTH African dairy and beverages maker Clover said yesterday it had bought the yoghurt and long-life milk business of fellow dairy company Dairybelle for R200-million.
"The transactions are in line with the company's strategy to expand its portfolio of value-added and branded consumer products," Clover said.
The deal would see the sale of Dairybelle's yoghurt and UHT milk units and Clover said it planned to enter the high-margin custard market.
Clover, whose brands include juices firm Tropika, last year ended a partnership with France's Danone, which had helped it enter the yoghurt market.
Clover said its full-year earnings would fall by more than 20% due to lower sales volumes.
Its shares fell almost 9%. – Reuters