A France-based dairy firm with elaborated North American operations, Lactalis Group publicly announced a deal of paying $3.2 billion for US-based Kraft Heinz’s natural, grated, cultured and specialty cheese businesses in Canada and also for its entire global cheese business.

Lactalis will get power over brands such as Cracker Barrel, Knudsen, Breakstone’s, Athenos, Polly-O, and Hoffman’s, outside the U.S. and Canada only, Cheez Whiz.  Lactalis will also procure a permanent license for the Velveeta brand in natural and international cheeses and Kraft brand in natural, grated and international cheeses.

Kraft Heinz will still have the possession over the Philadelphia Cream Cheese, Kraft Singles, Velveeta Processed Cheese and Cheez Whiz Processed Cheese businesses in the U.S. and Canada, the Kraft, Velveeta and Cracker Barrel Mac & Cheese businesses worldwide and the Kraft Sauces business across the globe.

The company being sold witnessed a total sale of approximately $1.8 billion in the past one year.

Kraft Heinz officials declared it “portfolio management at work.” The transaction “will aid in guide resource dispensation and investment choices.  Kraft Heinz will be aiming on growth areas and take strategic measures where appropriate.”

Lactalis, with U.S. operations based in Buffalo, N.Y., will also buy three Kraft Heinz production facilities located in Calif., Tulare, Walton, N.Y., and Wausau, Wis., as well as a distribution center located in Weyauwega, Wis.

Approximately 750 Kraft Heinz staffs will now join Lactalis, and the company anticipates to add-on additional American work opportunities to provide helping hands to this business as soon as the transaction gets completed, probably by the first half of 2021.

Lactalis owns brands such as Galbani, Président, Karoun, Parmalat, Rondele, Stonyfield Organic, Black Diamond, and Siggi’s.  These also include the two American yogurt companies which were acquired during late 2017 and early 2018.

Lactalis is already the owner of eight U.S. based plants in New York, New Hampshire, Vermont, Wisconsin, Arizona, Idaho and California, and 2,600 workers across the nation and has been serving there since the last 40 years. It has its existence in 51 countries.

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