Swiss dairy company Emmi will acquire a 40% stake in Brazil’s Laticínios Porto Alegre Indústria e Comércio, which is based in Ponte Nova in the state of Minas Gerais.

The remaining 60% of the stake will be retained by Porto Alegre's co-founders José Afonso and João Lúcio Barreto Carneiro.

The Brazilian dairy firm anticipates that the collaboration will create further opportunities. Following the acquisition, Emmi will strengthen its international growth strategy.

Emmi's chief executive officer (CEO) Urs Riedener said: “Laticínios Porto Alegre is a healthy company that has also done an excellent job in the recent years of economic difficulty.

"Its strong position provides Emmi with the possibility of complementing its product portfolio with innovative product and marketing concepts."

“Its strong position provides Emmi with the possibility of complementing its product portfolio with innovative product and marketing concepts, creating additional opportunities in a market with a great deal of potential over the long term.”

Laticínios Porto Alegre manufactures natural cheese, UHT milk, butter, and whey powder for the Brazilian food industry.

Recently, the company purchased production infrastructure in Barbacena to focus on the manufacturing of fresh cheese products.

The company generated sales of about BRL500m ($157m) last year. Its head office and a production facility are located in Ponte Nova, while another plant is in Mutum.