BRF will divest its 11 dairy units in Brazil to Parmalat, a subsidiary of French major Lactalis Groupe, for $805m.

The investment will make Lactalis the second largest dairy company in Brazil.

Lactalis was represented by Indusval & Partners bank in the deal.

Indusval & Partners bank director Samuel Oliveira was quoted by the Wall Street Journal that the company will use the Parmalat brand in Brazil, as it does in other emerging markets.

"We are very engaged and intend to finalize the deal as soon as possible."

BRF had said earlier this year that they wanted to focus on their meat business and international expansion and sell its dairy unit since Abilio Diniz had been appointed as chairman in the first half of 2013.

Brazilian brokerage Coinvalores analyst Sandra Peres told WSJ: "Since he came to the company, they have been focusing on higher value-added products and eyeing their international expansion."

In 2013, the dairy division of the Brazilian firm had reported proforma revenues of about €880m.

Lactalis had bought Brazilian gourmet-cheese maker Balkis last year and got to own units in the states of São Paulo and Minas Gerais.

Currently, Lactalis has a presence in 145 countries and employs over 54,000 people.