French firm's Indian unit buys Prabhat's dairy business for Rs 1,700 crore

Prabhat will now focus on its cattle field and animal genetics business with the sale of its dairy business

France-headquartered Global dairy major Lactalis will buy Mumbai-based Prabhat’s milk business in its third acquisition in India. 

Prabhat told the stock exchanges on Monday that Lactalis’ Indian subsidiary Tirumala Milk Products was acquiring its dairy business for Rs 1,700 crore, which is 1.09 times its FY18 sales of Rs 1,554 crore. The transaction is subject to mandatory approvals. The company did not specify a timeline for completion of the deal, but analysts expect it to be done in the next six months.

At Monday’s closing price of Rs 93.05 per share, Prabhat’s market capitalisation stands at Rs 909 crore. Kotak