The agreement is slated to become effective from 1 June 2016 . The terms of the agreement have not been disclosed.
Gay Lea Foods is an artisan cheese manufacturer, producing an array of cheeses for retail and foodservice under its current brands Salerno and Ivanhoe.
Black River Cheese is expected to strengthen Gay Lea Foods' existing cheese operations in Hamilton and Madoc, Ontario.
Gay Lea Foods will keep Black River Cheese store open as part of the ongoing commitment to the local community and thriving agri-food sector in Prince Edward County, Ontario.
Under Sarleno brand, the company sells Italian-style soft, semi-soft and hard cheeses for retail and wholesale, while Ivanhoe specializes in cheddar and smoked Gouda cheeses. Gay Lea Foods board chairman Steve Dolson said: "Gay Lea Foods is committed to growing the market for Canadian dairy and strengthening dairy farmers' ability to secure markets for our milk.
"We are pleased to welcome the Black River Cheese Company into our dairy co-operative as part of our continued support for the Canadian dairy industry and Ontario dairy farmers."
Gay Lea Foods president and CEO Michael Barrett said: "As Ontario's largest dairy co-operative, we are focused on growing a strong, sustainable dairy industry that continues to deliver innovative, market-driven dairy products, while further diversifying the Canadian cheese sector."
Gay Lea Foods is Canadian owned and operated cooperative, with 1200 dairy farmer owners who produce 35% of Ontario's cow milk. It has more than 3800 members, making it the largest dairy co-operative in Ontario, the company's website states.
The company has now expanded its membership to include licenced dairy goat producers in Ontario and processes goat milk into a range of dairy products as well as serving as a broker in the sector.
Its products include North America's first Smooth Cottage Cheese - Spreadables; and a snack made with 100% cheese called Nothing But Cheese.
