Agropur, Canada's largest dairy cooperative, said today it is acquiring Davisco Foods International, a U.S.-based cheese and dairy ingredients company. This transaction will double Agropur's U.S. processing operations and will increase its global milk intake by 50%. It will also strengthen its position in the North American and international dairy industries.
Earlier this month, Agropur purchased the dairy processing activities of Sobeys and signed long-term supply agreements with it. The value of the transaction, totaling Cdn$356 million includes:
• The purchase of four plants: two located in Edmonton, Alberta (milk - ice cream); one in Winnipeg, Manitoba (milk); and one in Burnaby, British Columbia (milk);
• The licensing of the Lucerne trademark to Agropur for the production and distribution of fluid milk and cream;
• Long-term supply agreements that will come into effect upon the transfer of the facilities to Agropur and expiration of current supply agreements.