Lactalis American-Parmalat Deal Altered
Italian dairy firm Parmalat at the end of May reached agreement to cut the purchase price of sister company Lactalis American Group (LAG) by $130 million, according to news agency Reuters.
Parmalat's board decided May 10 to request a $144 million cut in the acquisition price of LAG. Both LAG and Parmalat are owned by French cheese maker Lactalis.
Parmalat is facing criminal and civil inquiries into the May 2012 LAG deal, Reuters reports, which critics say drained the Italian company of cash.
Parmalat paid a preliminary price of $904 million when the deal closed.
LAG is headquartered in Buffalo, N.Y., and includes the former Sorrento business as well as the brand President.