LAEP Sells Off Assets To Reinforce Cash Flow

In its second quarter update, issued on August 19, Brazil's second largest dairy producer LAEP Investments warned that it was being impacted by falling margins and suggested that 'if the adverse scenario continues, the company may consider selling certain assets of lower strategic importance to reinforce its cash flow'. On September 1 the firm announced that it was selling its Poços de Caldas brand to Brazil's 10th largest dairy firm, Laticínios Morrinhos, for BRL50mn (US$30mn). With LAEP only buying the brand four months ago, it is reasonable to assume that this sale was driven by

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