ed dairy cooperative Agropur has completed the acquisition of US-based cheese and dairy ingredients company Davisco Foods, for an undisclosed amount.The company has financed the total consideration from existing cash resources and new credit facilities fully-underwritten by the co-lead arrangers and joint bookrunners Desjardins Capital Markets, BMO Capital Markets and Rabobank.
As part of the deal, the company has acquired three Davisco cheese processing factories in Le Sueur (Minnesota), Jerome (Idaho) and Lake Norden (South Dakota).
The company also acquired an ingredients plant in Nicollet (Minnesota), a Friendly Confines Cheese Shoppe in Le Sueur (Minnesota), as well as sales offices located in Minnesota, Shanghai (China Sales Office), Singapore and Geneva, and distribution centres located in Rotterdam, Netherlands, and Tianjin, China.
Agropur will double its US processing operations and increase its global milk intake by 50%, with this acquisition.
It will also strengthen the company's position in the North American and international dairy industries.
At the time of acquisition, Agropur CEO Robert Coallier said the world dairy industry is consolidating at an accelerated pace and acquisition of Davisco supports firm's objective of increasing global presence.
"One of our key business objectives is to pursue strategic acquisitions to diversify our geographic markets and product portfolios, "Coallier added.
Davisco, which is headquartered in Le Sueur of Minnesota, processes 3.8 billion pounds (1.7 billion litres) of milk annually and has 900 employees.
