French food giant Danone has entered an agreement to buy New Zealand dairy processing firms Sutton Group and Gardians.
News of the deal comes as this country's dairy industry negotiates a raft of new Chinese infant formula regulations, which come into force tomorrow.
Auckland's Sutton Group is best known for infant formula contract manufacturing, while Gardians - a joint venture with Sutton - operates a milk powder spray drying plant in Balclutha, Otago.
Danone's purchase price has not been disclosed. The French firm is the parent company of infant formula maker Nutricia, which operates a factory in Auckland's Mt Wellington.
"Last year we undertook a process to find new capital to grow the business and take it to the next level when we were approached by Danone," said Sutton co-founder Brent Sutton.
