Maharashtra-based Prabhat Dairy has entered into a definitive agreement with French dairy multinational Groupe Lactalis for the sale of its dairy business for a consideration of INR17bn ($238m). The transaction involves sale of the dairy business undertaking of Prabhat Dairy by way of slump sale on a going concern basis to Lactalis’ local arm, Tirumala Milk Products, along with the sale of 100 per cent shareholding in Sunfresh Agro Industries, a step-down subsidiary of Prabhat Dairy, via a share purchase agreement. SAI accounts for 98.24% of the total consolidated revenue of Prabhat Dairy. It posted aggregate revenue INR15.3bn for the year ended March 31, 2018. “The transaction with Tirumala represents a meaningful opportunity for the business undertaking to pursue its long term growth objectives, strengthen its balance sheet, bring in global expertise in product and technology, and offer global institutional relationships that can be leveraged to strengthen Prabhat’s existing business,” the company said in a statement. “The association with Lactalis – one of world’s largest dairy players – will offer this business a strong platform for accelerated growth momentum in becoming one of the largest private dairy businesses in India,” said Vivek Nirmal, joint managing director of Prabhat Dairy.