NZ Farming Systems in Uruguay hoped to take NZ dairy know how to South America.
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.
