Lactalis Group has initiated exclusive negotiations with French cheese company Bel Group to acquire its Leerdammer brand and related rights.

The two companies have signed a ‘unilateral promise’ to acquire a business.

Lactalis is looking to acquire the Leerdammer brand, plus assets in four countries, including Royal Bel Leerdammer, Bel Italia, Bel Deutschland and Bel Shostka Ukraine using its 1,591,472 shares (23.16%) in Bel Group.

Bel Group chairman and CEO Antoine Fievet said: “In line with our strategic priorities, we continue to grow our business and take on three further market segments, namely dairy, fruit and plant-based, and so reinforce our healthy snacking major player position.

“With this asset sale deal, we reaffirm our independent family business model that gives us the freedom to take a long-term view. For Leerdammer, this deal means a unique chance to have the backing of Lactalis, dairy products world #1, which will have the wherwithal to support it for its upcoming challenges.

“We’re proud to have supported it with tremendous success over close on 20 years. I’d like today to thank all Leerdammer and Bel Shostka Ukraine people for their outstanding work and commitment.”

Upon completion of the deal, Lactalis will hold a 0.90% stake in Bel.

Lactalis Group chairman Emmanuel Besnier said: “We welcome Leerdammer and we’re excited by the prospect of building on the growth of this iconic brand that people adore. This deal gives us an opening into the Dutch cheese market and production in Holland via three manufacturing plants.

“The transfer to us of Bel’s Italian, German and Ukrainian sales subsidiaries will boost our facilities in these countries benefiting both Leerdammer and other Bel product sales on these markets.”

For this transaction, BNP Paribas and Perella Weinberg Partners served as financial advisers to Bel Group and linklaters acted as its legal advisers.

Freshfields Bruckhaus Deringer et Bredin Prat acted as legal advisers for Lactalis Group.