Parmalat Mexico unit sells off assets

Parmalat's Mexican unit agreed to sell its industrial operations to local firm Grupo Industrial Lala, the Italian food and dairy…

Parmalat's Mexican unit agreed to sell its industrial operations to local firm Grupo Industrial Lala, the Italian food and dairy group said today.

Grupo Industrial Lala signed a licensing agreement to use the Parmalat brand.

Parmalat is selling off many of its assets worldwide as it seeks to reorganise after an accounting meltdown in one of the world's biggest-ever financial scandals.

Parmalat said the proceeds of the sale would go to pay off part of the Mexican unit's debt to third parties and other parts of the Parmalat group.

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No value was given for the asset sale or the licensing agreement with Parmalat in Italy. Grupo Lala is one of Mexico's largest dairy companies.

Parmalat's Mexico unit has 400 employees with a plant in the western state of Jalisco and three distribution centres.