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Fonterra sells Tip Top ice cream to Froneri for $250 million

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Christian Fernsby |
Acquisition   Fonterra

Fonterra confirmed the sale of its New Zealand Tip Top ice cream business to UK-based Froneri for NZ$380 million ($250.3 million).

The Tip Top brand is more than 80 years old, and was incorporated into Fonterra in 2001, as part of its purchase of Peter and Browne’s Foods Business.

The sale represents a gain of about NZ$100 million above book value, which would have a positive 6 cents-per-share impact on earnings, Fonterra said in a statement.

The dairy producer on Monday said it had entered an agreement with Froneri to supply milk, and that the Tip Top name and its operations, including an Auckland-based factory site at Mount Wellington, will be maintained.

The deal is expected to close by the end of May, and Tip Top employees will transfer across to become part of Froneri by its conclusion, Fonterra said.

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