French dairy company Groupe Lactalis has completed the previously announced acquisition of Itambé through its Brazilian subsidiary, Lactalis do Brasil.

Financial details of the agreement have not been disclosed.

The completion of the deal means Lactalis will now be able to process 2.3 billion litres of milk annually in Brazil.

In December 2017, the company announced plans to acquire Itambé and said it will pay about $600m to Itambé’s owner, CCPR, Reuters reported.

Itambé has the capacity to use three million litres of milk a day to produce a comprehensive portfolio of more than 160 dairy products.

With 7,000 suppliers, the company has four production facilities in the Brazilian state of Minas Gerais, as well as one in Goiânia, Goiás.

The combination of the two companies is expected to generate annual revenue of €1.5bn.

With this acquisition, Lactalis is expected to cover all dairy categories, including fluid and powdered milk, yogurt, cheese, butter, and industrial products.

The company expects its revenue in the country to reach $2.13bn.

It will also have 2.3 billion litres of milk purchasing capacity per year in the main production areas.

The company operates 19 production sites and has established a presence in the Southern Brazil region.

Earlier this month, Lactalis completed the acquisition of Ehrmann Commonwealth Dairy, the US yogurt business of German dairy firm Ehrmann.

In January, Indian company Prabhat Dairy signed a definitive agreement to divest its dairy business to Tirumala Milk Products, a subsidiary of Lactalis, for Rs17bn ($238m).

Upon completion, Prabhat Dairy will focus on its cattle feed business.