Fonterra, the largest New Zealand dairy cooperative providing nearly a third of global dairy exports, agreed to transfer its New Zealand Tip Top ice cream company to Froneri in a deal worth New Zealand dollars 380 million ($ 250.2 million).

Last December, Fonterra said it was considering selling the unit as part of its debt reduction plans. For the marketing year ending July 2018, Fonterra reported a net loss of $ 196 million New Zealand dollars ($ 128.5 million), its first annual loss since its inception in 2001.

Bad results prompted the company to conduct a review of fixed assets. Tip Top, which was founded in Wellington in 1936, sells an assortment of ice cream, tubs and candies. Upon completion of the transaction, which is expected by the end of May, the name Tip Top and its operations, including the Auckland plant in Mount Wellington, will be retained.

Froneri, which positions itself as the “third largest” ice cream producer in the world, is a joint venture headquartered in the UK owned by Nestlé and R & R.

Commenting on future business development plans, Kim Ballinger, managing director of Tip Top, said the company will continue to “remain committed to our local heritage and our many loyal customers in New Zealand and the wider Asia-Pacific region. We are all very pleased with what awaits us in the future. ”

Fonterra CEO Miles Harrell said: “We have signed an agreement with the new owners for the supply of milk, which ensures that Fonterra farmers continue to be part of Tip Top history.”