May 24/Paris/Agence France Presse -- Italian dairy giant Parmalat has announced the acquisition of sister unit Lactalis American Group, in a deal worth $904 million. The deal is partly internal, as both groups are owned by French dairy giant Lactalis.

Parmalat said the deal for LAG, sells President-brand Brie as well as U.S.-made mozzarella, was “motivated exclusively by relevant industrial synergies, territorial coverage extension, product portfolio improvement and EBITDA improvement.” The move also gives it entry into the U.S. market and will help it import Canadian cheddar cheese as well as sell Lactalis' "soft and fresh" cheese products.

The deal has the additional benefit of transferring some cash to Lactalis’ books, which it plans to use to repay debts.

 From the May 25, 2012, Prepared Foods’ Daily News