Clover also said its full-year earnings would fall by over 20% due to lower sales volumes. The company's shares fell almost 9%.
"The transactions are in line with the company's strategy to expand its portfolio of value added and branded consumer products," Clover said in a statement.
The deal would see the sale of Dairybelle's yoghurt and UHT milk units and Clover said it also planned to enter the high margin custard market.
Clover, whose brands include juices firm Tropika, last year ended a partnership with French food maker Danone, which had helped it enter the yoghurt market.