Canadian agricultural cooperative Agropur has agreed to merge its operations with dairy products supplier Dairytown Products.
The parties are expected to finalize the deal in the coming weeks following which the Dairytown beneficiaries will be asked to vote on the proposed transaction.
Dairytown Products chairman Jim Walker said, "This will allow the producers of both organizations to benefit from the advantages of being part of a large national cooperative, and to better serve customers across the country."
Agropur Cooperative president Serge Riendeau said that this agreement is consistent with the company's desire to keep dairy processing assets in the hands of producers wherever possible.
"It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada," Riendeau added.
The transaction is subject to final approval and authorizations from the competition bureau and other regulators.
Dairytown Products offers butter, skim milk powder and custom milk powder blends to the retail, food service and further processing trades. It has 207 beneficiaries and 189 employees.
Agropur runs 31 facilities across North America, and its portfolio of brands include Natrel, Québon, OKA, iögo and Olympic (joint venture with Ultima Foods), Farmers, Agropur Signature cheese, among others.
