Nestle Malaysia said earlier that it expected the sale to Lactalis for 155.3 million Ringgit (28.3 million pounds)to result in a one-time gain of about 27 million Ringgit over 2018 and 2019.
Nestle's chilled dairy business in Malaysia generates revenues of 21 million euros (18.4 million pounds), said Lactalis, which is a privately-held French company.
The deal, which will take effect next January, follows the earlier acquisition by Lactalis of the Stonyfield organic yoghurt brand from Danone and the purchase of siggi's, a U.S.-based maker of Icelandic yoghurt.
Lactalis was at the centre of an earlier health crisis when a salmonella outbreak at a Lactalis milk factory last year led to dozens of babies falling ill.
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)