New Zealand-based dairy co-operative Fonterra has confirmed the sale of its Tip Top ice cream business to global company Froneri in a deal valued at N$380m ($250m).

Fonterra’s latest move comes as it looks to trim its portfolio and focus on global markets.

Both companies intend to settle the deal by 31 May 2019, with a transition period that will be carried out over a number of months.

Fonterra CEO Miles Hurrell said: “Since we took ownership of Tip Top in 2001, a lot of work has gone into ensuring it remained New Zealand’s leading ice cream company.

“One of the big attractions for Froneri is the fact that Tip Top and Kāpiti ice cream both use fresh milk and cream from New Zealand grass-fed cows. We’ve signed an agreement with the new owners to supply milk, which ensures that Fonterra farmers will continue to be part of the Tip Top story.”

Additionally, Fonterra will retain full global ownership of the Kāpiti brand and licence its use for ice cream to Froneri.

The Tip Top brand was incorporated into Fonterra as part of its purchase of Peter and Browne’s Foods Business, Reuters reported.

Over the past eight decades, Tip Top ice cream business has been owned by several international brands.

Upon completion of the deal, Tip Top employees will be transferred across and become part of Froneri company.

Froneri CEO Ibrahim Najafi said that it will maintain the Tip Top name and its operations, including the Auckland-based factory site at Mount Wellington.

Froneri has been offering a wide range of ice cream brands in 20 countries.